Borrowers approval not needed to share credit info: RBI

India Infoline News Service | Mumbai |

Earlier, consent clause for sharing information with CICs was required in the loan documents

The Reserve Bank of India (RBI) said that banks and financial institutions need not seek borrowers’ consent to share credit information with credit information companies.

The Credit Information Companies (Regulation) Act provides statutory backing for sharing of credit information by credit institutions with credit information companies (CICs).

With CIC Act coming into force, the “consent clause” has become redundant, the RBI said in a notification on Tuesday.

Earlier, consent clause for sharing information with CICs was required in the loan/credit documents.
 

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