Page 53 - Banking Finance October 2023

RBI CIRCULAR

RBI

CIRCULAR

Display of information - Secured assets is being used for data submitted under the consumer
segment.
possessed under the SARFAESI Act, 2002
2. With a view to enable further implementation of DQI,
September 25, 2023 it has been decided that CICs shall prepare DQIs for
Commercial and Microfinance segments also as per
1. As a part of the move towards greater transparency, Annex I and II, respectively. CICs shall provide the DQIs
it has been decided that the Regulated Entities (REs) for Commercial and Microfinance segments to all CIs
of the Reserve Bank which are secured creditors as per latest by March 31, 2024.
the Securitisation and Reconstruction of Financial As- 3. Further, CICs are advised as under:
sets and Enforcement of Security Interest (SARFAESI)
i. CICs shall provide DQIs for Commercial and
Act, 2002, shall display information in respect of the
Microfinance segments in the form of numeric
borrowers whose secured assets have been taken into scores on a monthly basis to all member credit
possession by the REs under the Act.
institutions.
2. REs shall upload this information on their website in the
ii. DQI scores for Commercial and Microfinance seg-
format as prescribed in the Annex. The first such list
ments shall be provided at CI and file level. The
shall be displayed on the website of REs within six (6) DQI scores for Commercial and Microfinance seg-
months from the date of this circular, and the list shall
ments at CI level shall be computed as weighted
be updated on monthly basis.
average of file level DQI scores of commercial and
Data Quality Index for Commercial and microfinance segment respectively of that CI.
iii. CICs shall compute industry level DQIs for each of
Microfinance Segments by Credit Informa-
the three reporting segments1 as weighted aver-
tion Companies age of the CI level DQI in their respective category
(e.g. Public Sector Banks, Private Sector Banks,
September 20, 2023
Foreign Banks, Co-operative Banks, RRBs, NBFCs
1. Please refer to our circular DBOD.No.CID.BC.127/ etc.) on monthly basis. Further, a half yearly Indus-
20.16.056/2013-14 dated June 27, 2014, inter alia set- try Benchmark shall be calculated as a rolling av-
ting out a common Data Quality Index (DQI) for assess- erage of preceding six months Industry level DQI
ing the quality of data submissions by Credit Institutions score of respective category of CIs.
(CIs) to Credit Information Companies (CICs) and improv- iv. CICs shall provide reasons for decline in score to
ing the same over a period of time. Currently, the DQI each CI, if its (a) CI level score has declined over

BANKING FINANCE | OCTOBER | 2023 | 53