Recommendation of RBI committee for data formats for CICs.All commercial banks,Regional Rural banks,Local Area Banks,HFCs and SFCs may be compulsorily required to become members of all CICs and submit data to them.

1. Impact Analysis of
Recommendations of RBI committee
for data Formats for CICs
http://rbi.org.in/scripts/BS_PressReleaseDisplay.aspx?prid=30855

2. Recommendations of RBI committee for data Formats for CICs
Recommendation Potential Impact/opportunity
All commercial banks, Regional Rural banks, Local Area Banks,
HFCs and SFCs may be compulsorily required to become
members of all CICs and submit data to them.
Cooperative banks and NBFC with assets over ₹ 100 crores
may be compulsorily required to become members of all CICs.
Others may be encouraged to become members of all CICs
• Huge increase in data load for CICs.
• Help banks to generate and share data with
all CICs in standardised TUDF format
• Adaptor for banks for generating and
sharing data with all CICs in standardised
TUDF format
Include following fields relating to the CPs in the commercial
data format for collecting credit info from CIs:
1. Name of CP issuer
2. Name of IPA
3. Amount
4. Issue date
5. Maturity date
6. Name of credit rating agency
7. Rating assigned
8. Amount of default
TBD in the TWG (technical working group) for
data formats
CICs may populate their DBs with commercial data records
within 1 year
Opportunity to help CICs populate DBs with
commercial data

3. Recommendation Potential Impact/opportunity
CIR should report co-borrower and guarantor details Enhance CIR format to include these details
CIC may be required to have information on mortgages of properties
in the consumer bureau format by having linkages with the database
of the Central Registry (CERSAI)
Enhance CIR format and the system that
generates CIR (MSOTool)?
In case of multiple borrowings of the same customer, information on
various accounts may be provided in the order of live accounts,
closed accounts and overall position of NPA status/wilful default/suit
filed, with limits and liabilities of each account
Enhance CIR format and the system that
generates CIR (MSOTool)?
CIC should provide ‘Read-only’ access to members to view the data
provided and updated by them
New system requirement unless already
there
Necessary steps be taken to put in place a full-fledged online data
correction mechanism
New system requirement
Adequate disincentives be put in place to ensure that CICs and CIs
adhere to the timelines stipulated under the CIC rules for resolving
discrepancies in CIR
?
CIRs should provide appropriate disclosures if any information
contained therein is disputed and the matter is not satisfactorily
resolved. if the customer so desires, his/her comment could also be
added to the CIR
Enhance CIR format and the system that
generates CIR?
Recommendations related to CIR

4. Recommendation Potential Impact/opportunity
New fields to indicate willful default of over ₹ 25 lakh (suit filed and
non-suit filed accounts)
Improve the commercial data format
DPDs should be captured by CIs for reporting to CICs Enhancements to the CBS/credit systems of Cis
Fields showing reasons for restructuring Improve the commercial data format
Banks to share data on unhedged foreign currency exposure with
CICs.
CICs may devise suitable format / fields for
incorporation in the Commercial Data Format.
Data from CIs should have at least one of the identifier fields viz.
PAN card No, Driving license no, Voter Card ID no. etc.
CIs to improve data generating process
Reasons fore rejection need to be parameterized and circulated
among the credit institution concerned. Rejection reports should be
made simple and understandable.
Enhancements to data upload process of CICs
(DUA)
Data Quality Index New application requirement at CIC or Cis
CIBIL method of calibrating credit score from 300 to 900 could be
adopted by the other CICs
Other CICs to Modify/create calibration to
match scoring from 300 to 900
Changes in Commercial data format of CIBIL

5. Recommendation Potential Impact/opportunity
When CIRs on the same borrower are accessed by more then one
specified user, say, within a period of one month, an alert may be
provided by the CIC to all specified users who have drawn the
reports, to avoid multiple financing to void fraudulent transactions
Enhance the system generating CIR, for this
feature (MSOTool)?
Alerts on borrowers who are changing their address/office are to be
indicated to other credit grantor as a Separate value added product,
without disclosing the name of the CI
New application requirement?
Customization of reports to provide specific information like
behaviour pattern of borrowers, as a separate value added product
New application requirement?
All CICs should be ISO27001:2013 certified for information security Certification audit by a reputed auditor
Best practices for CICs

6. Recommendations of RBI committee for data Formats for CIs
Recommendation Potential Impact/opportunity
Banks may be required within a reasonable period of, say,
eighteen months, to arrange for capturing the required data
from SHGs for reporting to CICs
Banks required to update their processes
to capture info about members of SHGs
All banks should be required to share DPD data in their
reporting under asset classification.
In the commercial segment, corporate identification number
and credit history of the directors of the company (based on DIN
number) also should be included.
Modify CIBIL commercial data format
There should be only one format for uploading and reverting
reject data from the CIC as conversions/ reconversions between
formats like Excel/TUDF/Notepad, etc., during the process of
furnishing data create validation issues.
Standardisation of data format between
CIs and CICs
The term ‘settled’ be suitably explained in the consumer CIR to
avoid misinterpretation by users. Explanation by borrower may
also be included if desired by the borrower
Changes in CIR format
DPDs should be captured by CIs for reporting to CICs Enhancements to the CBS/credit systems
of CIs

7. Recommendations of RBI committee for data Formats for CIs
Recommendation Potential Impact/opportunity
CIs may include in their credit appraisal processes, provisions for
obtaining credit reports from one or more CICs so that the credit
decisions are based on the information available in the system
Integrate CBS/credit appraisal systems with
CICs to directly fetch CIRs into the system
without manual intervention
CIBIL format to be taken as base for standardisation of data
formats for consumer and commercial borrowers. High Mark’s
format to be the base for MFI data reporting.
Advantages CIBIL and HM. Other CICs need
to adopt these formats.
Additional fields in data formats as per annex 5 of the report. Changes in data formats to be incorporated
in the data coming from CIs and CICs need
to modify their data validation and upload
procedures accordingly.
Detailed product classification, e.g., car loans, commercial
vehicles and construction equipment vehicles, under auto loans
could be furnished by CICs if so reported by the banks.
Change in CIR format
Business category/type, Mobile/Telephone number, State/Pin-
code/Country enhance the value of the commercial bureau data
and hence should be captured by the banks in their CBS.
Enhance banks’ CBSs

8. Recommendation Potential Impact/opportunity
Banks should mandate the use of CIRs in credit appraisal process Directly fetch CIRs into credit processing systems
Data Quality Index New application requirement at CIs
Best practices for CIs

9. Current Scenario
4 April 2014 Harrier 9

10. Proposed New Scenario
4 April 2014 Harrier 10

11. To achieve this, use SMAC-G
4 April 2014 Harrier 11

12. We seek your
feedback & shall be
happy to discuss
further!
4 April 2014
Nagpur
Shanti Plaza, Shanti Park, Harihar Nagar
Besa, Nagpur – 440034
India
Tel: +91-712-329-6558, 653-6728
Fax: +91-712-245-5322
Mumbai
201-B, Mastermind III
Royal Palms, Goregaon (E)
Mumbai - 400065
USA
1512, Penzance way,
Hanover, MD – 21076
Email: info@harriersys.com
http://www.harriersys.com/
Harrier 12
Thank you!