THE CREDIT INFORMATION COMPANIES (REGULATION) ACT, 2005

2005 · State unknown · central · act_text

Sections (57)

33A · Powers of Reserve Bank not to apply to International Financial Services Centre.

1 · Short title, extent and commencement . — (1) This Act may be called the Credit Information Companies (Regulation) Act, 2005.

2 · Definitions . — In this Act, unless the context otherwise requires,—

1 · 14th December, 2006, vide notification No. S.O. 2098(E), dated 14th December, 2006, see Gazette of India, Extraordinary, Part II, sec. 3(ii).

3 · Prohibition to commence or carry on business of credit information . — Save as otherwise provided in this Act, no company shall commence or carry on the business of credit information without obtaining a certificate of registration from the Reserve Bank under this Act.

4 · Application for registration . — (1) Every company which intends to commence the business of credit information shall make an application for registration to the Reserve Bank in such form and manner as may be specified by regulations.

5 · Grant of certificate of registration . — (1) The Reserve Bank may, for the purpose of considering the application of a company for grant of a certificate of registration to commence or carry on the business of credit information, require to be satisfied, by an inspection of records or books of such company or otherwise that the following conditions are fulfilled, namely:—

6 · Power of Reserve Bank to cancel certificate of registration . — (1) The Reserve Bank may cancel a certificate of registration granted to a credit information company under sub-section (2) of section 5 if such company,—

7 · Appeal against order of Reserve Bank . — (1) A credit information company aggrieved by the order of rejection of an application for grant of certificate of registration under section 5 or cancellation of certificate of registration under section 6, may prefer an appeal to the Central Government or any other authority or tribunal which may be designated by rules made by the Central Government, within a period of thirty days from the date on which such order of rejection or cancellation, as the case may be, is communicated to the credit information company.

8 · Requirement as to minimum capital . — (1) The authorised capital of every credit information company shall be a minimum of thirty crores:

9 · Management of credit information company . — (1) Notwithstanding anything contained in any law for the time being in force, or in any contract to the contrary, every credit information company in existence on the commencement of this Act, or which comes into existence thereafter, shall have one of its directors, who may be appointed on whole-time or on a part-time basis as chairperson of its board, and where he is appointed on whole-time basis as chairperson of its board, he shall be entrusted with the management of the whole of the affairs of the credit information company:

10 · Power of Reserve Bank to determine policy . — Where the Reserve Bank is satisfied that it is necessary or expedient in the public interest or in the interest of specified users or in the interest of credit information companies or credit institutions or clients or borrowers so to do, it may determine the policy in relation to functioning of credit information companies or credit institutions or specified users generally or in particular and when the policy has been so determined all credit information companies, credit institutions and specified users, as the case may be, shall be bound to follow the policy as so determined.

11 · Power of Reserve Bank to give directions . — (1) Where the Reserve Bank is satisfied that,—

12 · Inspection of credit information company, credit institution and specified user . — (1) Notwithstanding anything to the contrary contained in section 235 of the Companies Act, 1956 (1 of 1956), the Reserve Bank, at any time, may and on being directed so to do by the Central Government shall, cause an inspection to be made, by one or more of its officers or through such other persons or agency as the Reserve Bank may determine, of any credit information company or credit institution or specified user and their books and accounts; and the Reserve Bank shall supply to the credit information company or credit institution or specified user, as the case may be, a copy of its report on such inspection.

13 · Powers and duties of auditors . — (1) It shall be the duty of an auditor of a credit information company to inquire whether or not the credit information company has furnished to the Reserve Bank such statements, information or particulars relating to its business as are required to be furnished under this Act and the auditor shall, except where he is satisfied on such inquiry that the credit information company has furnished such a statement , information or particulars, make a report to the Reserve Bank in this regard.

14 · Functions of a credit information company . — (1) A credit information company may engage in any one or more of the following forms of business, namely:—

15 · Credit Institution to be member of a credit information company . — (1) Every credit institution in existence on the commencement of this Act, before the expiry of three months from such commencement or within such extended period, as the Reserve Bank may allow on its application and subject to being satisfied about the reason for extension, shall become member of at least one credit information company.

16 · Failure to become a member of a credit information company . — (1) Where a credit institution— n—

17 · Collection and furnishing of credit information . — (1) A credit information company or any person authorised in that behalf by the company may, by notice in writing, in such form, as may be specified by regulations made by the Reserve Bank or as near thereto, require its members being credit institution or credit information company, to furnish such credit information as it may deem necessary in accordance with the provisions of this Act.

18 · Settlement of dispute . — (1) Notwithstanding anything contained in any law for the time being in force, if any dispute arises amongst, credit information companies, credit institutions, borrowers and clients on matters relating to business of credit information and for which no remedy has been provided under this Act, such disputes shall be settled by conciliation or arbitration as provided in the Arbitration and Conciliation Act, 1996 (26 of 1996), as if the parties to the dispute have consented in writing for determination of such dispute by conciliation or arbitration and provisions of that Act shall apply accordingly.

19 · Accuracy and security of credit information . —A —A credit information company or credit institution or specified user, as the case may be, in possession or control of credit information, shall take such steps (including security safeguards) as may be prescribed, to ensure that the data relating to the

20 · Privacy principles . — Every credit information company, credit institution and specified user, shall adopt the following privacy principles in relation to collection, processing, collating, recording, preservation, secrecy, sharing and usage of credit information, namely:—

21 · Alteration of credit information files and credit reports . — (1) Any person, who applies for grant or sanction of credit facility, from any credit institution, may request to such institution to furnish him a copy of the credit information obtained by such institution from the credit information company.

22 · Unauthorised access to credit information . — (1) No person shall have access to credit information in the possession or control of a credit information company or a credit institution or a specified user unless the access is authorised by this Act or any other law for the time being in force or directed to do so by any court or tribunal and any such access to credit information without such authorisation or direction shall be considered as an unauthorised access to credit information.

23 · Offences and penalties . — (1) Whoever, in any return or other document or in any information required or furnished by, or under, or for the purposes of, any provision of this Act, wilfully makes a statement which is false in any material particular, knowing it to be false, or wilfully omits to make a material statement, shall be punishable with imprisonment for a term which may extend to one year and shall also be liable to fine.

24 · Cognizance of offences . — (1) No court shall take cognizance of any offence committed by a member of a credit information company and punishable under section 23 except upon a complaint in writing made by an officer of the credit information company generally or specially authorised in writing in this behalf by the credit information company or if so directed by the Reserve Bank so to do and no court other than that of a Metropolitan Magistrate or a Judicial Magistrate of the first class or any court superior thereto shall try any such offence.

25 · Power of Reserve Bank to impose penalty . — (1) Notwithstanding anything contained in section 23, if a contravention or default of the nature referred to in sub -section (2) of section 22 or sub-section (2) or sub -section (3) or sub-section (4) of section 23, as the case may be, is made by a credit information company or a credit institution then, the Reserve Bank may impose on such credit information company or credit institution— n—

23 · , then, no proceedings for the imposition of any penalty on the credit information company or credit institution or specified user shall be taken under this section.

26 · Application of fines . —A —A court imposing any fine under this Act may direct that the whole or any part thereof shall be applied in or towards payment of the costs of the proceedings, or for such purposes as may be directed by the court.

27 · Power of Reserve Bank to specify maximum amount of fees . — The Reserve Bank may, specify, by regulations the maximum amount of fees leviable under sub-section (3) of section 14 for providing information to the specified users and for admissions of credit institutions or credit information companies as a member of a credit information company.

28 · Disclosure of information before any court or tribunal or authority . —N —No chairperson, director, member, auditor, adviser, officer or other employee or agent employed in the business of a credit information company or in the business of a specified user shall, except for the purposes of this Act or when required to do so by any other law in force or court or tribunal or authority, disclose any information to any person.

29 · Obligations as to fidelity and secrecy . — (1) Every credit information company shall observe, except as otherwise required by law, the practices and usages customary among credit information companies and it shall not divulge any information relating to, or to the affairs of, its members or specified users.

30 · Protection of action taken in good faith . — (1) No suit or other legal proceedings or prosecution shall lie against the Reserve Bank or the Central Government or credit information company or credit institution, or their chairperson, director, member, auditor, adviser, officer or other employee, or agent or any person authorised by the Reserve Bank or the Central Government or credit information company or credit institution to discharge any function under this Act, for any loss or damage caused or as is likely to be caused by anything which is in good faith done or intended to be done, in pursuance of this Act or any other law for the time being in force.

31 · Bar of jurisdiction . —N —No court or authority shall have, or be entitled to exercise, any jurisdiction, powers or authority, except the Supreme Court and a High Court exercising jurisdiction under articles 32, 226 and 227 of the Constitution, in relation to the matters referred to in sections 4, 5, 6, 7 and 18.

32 · Power of Reserve Bank to exempt in certain cases . — (1) The Central Government may, on the recommendation of the Reserve Bank, by notification in the Official Gazette, direct that any or all of the provisions of this Act shall not apply to any credit information company or a credit institution, as the case may be, either generally or for such period and subject to such exceptions or modifications, as may be mentioned in that notification.

33 · Application of other laws not barred . — The provisions of this Act shall be in addition to, and not, save as provided under this Act, in derogation of, the provisions of the Companies Act, 1956 (1 of 1956) or any other law for the time being in force.

1 · [33A. Powers of Reserve Bank not to apply to International Financial Services Centre . — Notwithstanding anything contained in any other law for the time being in force, the powers exercisable by the Reserve Bank under this Act, —

34 · Amendment of certain enactments . — The enactments mentioned in the Schedule to this Act shall be amended in the manner specified therein.

35 · Removal of difficulties . — (1) If any difficulty arises in giving effect to the provisions of this Act, the Central Government may, by order published in the Official Gazette, make such provisions not inconsistent with the provisions of this Act as appear to it to be necessary or expedient for removing the difficulty:

36 · Power to make rules . — (1) The Central Government may, after consultation with the Reserve Bank, by notification in the Official Gazette, make rules to carry out the provisions of this Act.

1 · Ins. by Act 50 of 2019, s. 33 and the second Schedule (w.e.f. 1-10-2020).

37 · Power of Reserve Bank to make regulations . — (1) The Reserve Bank may make regulations consistent with the provisions of this Act and the rules made thereunder to carry out the purposes of this Act.

45E · , sub -section (2), after clause (c), insert—

1 · Section 19, after sub -section (3), insert—

2 · Section 28, for "publish any information obtained by them under this Act in such consolidated form as they think fit", substitute—

40 · , after sub -section (3), insert—

44 · , after sub -section (2), insert—

52 · , after sub -section (2), insert—

39 · , after sub -section (2), insert—

40 · , insert —

13 · , after sub -section (3), insert—

30 · , after sub -section (3), insert—

51 · , after sub -section (2), insert—

3 · , after sub -section (2), insert—

44 · , after sub -section (2), insert—

25 · , after sub -section (2), insert—

Subordinates (12)

[TO BE PUBLISHED IN THE GAZETTE OF INDIA,

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xfart x zle Vcp-33004/99

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RESERVE BANK OF INDIA NOTIFICATION

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<!Ja~ette of! ~ndia

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TO BE PUBLISHED IN THE GAZETTE OF INDIA,

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TE%o <e_Tdo-33004/99

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[TO BE PUBLISHED IN THE GAZETTE OF INDIA,

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TO BE PUBLISHED IN THE GAZETTE OF INDIA,

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regulations af793ba8d674

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