The Hindu Business Line : Credit info cos: 49% cap on foreign investment likely

New Delhi, Aug. 3 The Government is close to finalising the policy on foreign investments in credit information companies. Indications are that foreign investment cap on such companies would be placed at 49 per cent.

Official sources said that the 49 per cent level is likely to be notified within a month. The 49 per cent level would include both foreign direct investment and foreign portfolio investment through foreign institutional investors (FII).

With increased economic activity and consumer spending in the country, credit grantors have been keen to gain a complete picture of the payment history of credit applicant.

Credit information companies fill this need for banks, financial institutions, state financial corporations, non-banking financial companies, credit card companies and housing finance companies.

CIBIL

In India, Credit Information Bureau (India) Ltd (CIBIL) was incorporated in 2000 to enable its members to make informed and faster credit decisions. The company has a diversified shareholding comprising certain commercial banks, foreign companies and non-banking finance companies. Sharing of commercial as well as consumer information is based on the principle of reciprocity, which means that only members who have submitted all their credit data could access credit information reports from CIBIL.

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