The Credit Information Bureau (India) Ltd. (CIBIL) was incorporated in 2000 and launched its operations in April 2004. Following enactment of the Credit Information Companies (Regulation) Act (CICRA) in 2005, three other Credit Information Companies (CICs) were also set up. With the industry having seen almost ten years of operation, the infrastructure for credit information sharing needs to be strengthened. Areas where changes are necessary include increasing the coverage of credit information business, harmonizing the reporting formats across CICs, rationalizing the classification of accounts and their nomenclature based on payment history, standardizing the contents of credit information reports, and putting in place best practices for CICs and credit institutions. Setting up of credit bureaus in Asia really took off only after the Asian crisis of 1997. Even in India there was need for putting in place an institutional mechanism for collecting and furnishing, on request, information on both the existing and prospective borrowers of banks and other institutions. This would go a long way in arresting the growth of non-performing advances of banks and financial institutions. Therefore, a “Working Group to explore the possibilities of setting up a Credit Information Bureau in India” was set up in 1999. The Group reaffirmed the urgent need for establishment of a credit bureau in India in its report of November 1999. Accordingly, Credit Information Bureau (India) Ltd. (CIBIL) was incorporated in August 2000. CIBIL launched its credit bureau operations in April 2004 and its commercial bureau operations in May 2006 Subsequent to the enactment of CICRA 2005, the following three credit information companies (CICs) were given in-principle Certificates of Registration in April 2009 to commence the business of credit information.
Equifax Credit Information Services Pvt. Ltd.
Experian Credit Information Company of India Pvt. Ltd.
High Mark Credit Information Services Pvt. Ltd.
CIBIL was also given an in-principle approval in April 2009 to carry on the business of credit information since it was already functioning as a CIC prior to the enactment of the Act. Subsequently, the first three CICs were given COR during the year 2010 while CIBIL was given COR in the year 2012.
