Annexure I

RESERVE BANK OF INDIA

CENTRAL OFFICE,

SHAHID BHAGAT SINGH ROAD,

MUMBAI - 400 001. INDIA

DEPUTY GOVERNOR

MEMORANDUM

Working Group to explore the possibilities of setting up a Credit Information Bureau in India

It is being contemplated to establish a Credit Information Bureau for the collection of credit information relating to borrowers from lending institutions and for the provision of such information to the financial system, with a view to facilitating the distribution of credit to all sectors of the economy and for matters connected therewith or incidental thereto. With a view to preparing an outline for setting up the Bureau, is has been decided so constitute a Working Group in Reserve Bank of India.

The composition of the Working Group is as under :-

1.

Shri N.H. Siddiqui.

Chairman

Chief General Manager,

Deportment of Banking Operations & Development

Central Office

Reserve Bank of India

Mumbai.

2.

Dr. K. V. Rajan

Member

General Manager

Department of Banking Operations & Development

Central Office.

Reserve Bank of India

Mumbai

3.

Shri Anand Sinha

Member

General Manager

Department of Banking Supervision

Central Office.

Reserve Bank of India

Mumbai.

4.

Shri P.V. Subba Rao

Member

General Manager

Department of Non-Banking Supervision

Central Office

Reserve Bank of India

Mumbai.

5.

Shri B.B. Tiwari,

Member

Joint Legal Advisor

Legal Department

Central Office

Reserve Bank of India

Mumbai.

6.

Shri R. Gandhi

Member

General Manager

Department of External Investment & Operations

Central Office

Reserve Bank of India

Mumbai.

7.

Shri C.R. Radhakrishnan

Member

General Manager

(Credit Policy and Procedure)

State Bank of India

Central Office

Mumbai.

8.

Shri S.V. Joshi

Member

General Manager

Bank of Baroda

(Mumbai Metropolitan Zone)

Mumbai.

9.

Shri M.G. Bakre

Member

Chief General Manager

Credit Recovery Department

IDBI

Mumbai.

10.

Shri S.A. Kerkar

Member

Senior General Manager

ICICI Ltd, Mumbai.

11.

Shri K. Unnikrishnan

Member

Executive - Banking Operations,

Indian Banks' Association

Mumbai.

12.

Shri M.P. Kothari

Member-Secretary

General Manager

Department of Banking Operations & Development

Central Office

Reserve Bank of India

Mumbai.

The terms of reference of the Working Group will be as under :

1)

to examine in detail the modalities for setting up of the Bureau, as well as powers and functions to be assigned to it;

2)

to look into all matters, (including the legal aspects) relating to the administration and management of the affairs of the Bureau;

3)

to recommend a suitable ownership and organisational pattern for the Credit Information Bureau;

4)

to finalise the type and range of trade, credit and financial information on borrowers or prospective borrowers of lending institutions to be collected from the customers of banks and other financial institutions generally and specifically; as also other economic/ environmental data that would be useful for the purpose The Group should also identify the various sources for collection of the information;

5)

methodology for maintenance of data bank on borrowers from lending institutions and its dissemination including supportive technology requirements therefor;

6)

to identify the member eligible for availing of the credit information and to decide on cost of dissemination of the data;

7)

to examine issues relating to furnishing of credit information by the Credit Information Bureau, on request, to financial institutions and to prescribe the forms in which such information into be furnished ;

8)

any other matter relevant to the setting up of a Credit Information Bureau.

The Secretariat support to the Working Group will be provided by the Department of Banking Operations & Development, Central Office, Reserve Bank of India.

The Working Group will submit its report by August 31, 1999.

(S.P. Talwar)

Deputy Governor

June 8, 1999