According to reports, the Reserve Bank of India (RBI) may provide non-banking financial companies (NBFCs) and mutual funds (MFs) with access to sensitive information such as the Central Repository of Information on Large Credits (CRILC).
CRILC was set up in FY 2014-15 by the central bank to serve as a database for sensitive data and supervision of the banks’ activities in the country.
CRILC also keeps track of all credit information of large borrowers whose non-fund-based and fund-based exposure is Rs.5 crore and more.
Also Read: Benefits of mutual funds savings against chit funds
Banks are required to submit the CRILC report as per the norms mentioned in the RBI Act every month. In case of non-compliance, the banks can be penalised by the central authority.
Plans are already underway to make the information available to financial shareholders. If the data is made available to MFs and NBFCs, the asymmetry in information being accessible by only banks will be done away in one single action.
For any clarifications/feedback on the topic, please contact the writer at viswanathan.v@cleartax.in
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