‘Will catalyse credit information industry’

Credit information companies (CIC) have hailed the Government’s move to hike foreign direct investment (FDI) in the industry to 74 per cent from the existing 49 per cent.

The Centre has also now put investments in CICs under the automatic route.

Before the latest decision, all investments in CICs were allowed only under the approval route.

Reacting to the decision, Arun Thukral, Managing Director, CIBIL, told Business Line that the increase in FDI in the credit information space is a progressive move that will catalyse growth of the credit information industry in the country.

Increased FDI will refuel technological advancements and global expertise for the existing players, he said

“Advancement in credit information technology and proven global expertise will create a win-win situation for all the stakeholders in the credit sector — credit information companies, banks and eventually the consumers as well as the economy,” Thukral said.

Mohan Jayaraman, Managing Director, Experian Credit Information Company of India, welcomed the decision saying it is certainly positive for the sector as credit information is a long-term industry. The step will go a long way in getting anchor investors to stay here.

“It would be too early to expect the amount that would come through. However, this move will hasten the existing plans of the CICs and will help the sector grow better.

According to Ashvin Parekh, National Leader, Global Financial Services, Ernst & Young, “This move will help to build the technical know-how of the industry. This will bring best practices in the industry.

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