CIBIL to expand operations

Plans to open database to common man by year-end


This is a significant step for the development of the credit information industry and will allow CIBIL to work with different verticals like insurance, telecommunication and credit rating agencies. Till now CIBIL had a mandate to work only with banks and financial institutions which have access to complete information on credit defaulters  (on loans and on credit cards) from CIBIL. Member banks share their list of defaulters and good accounts with CIBIL.

Future plans
Talking to Deccan Herald, CIBIL Managing Director Arun Thukral said, “We have plans to open our database to the common man by the end of 2009 at a nominal charge.”  CIBIL also plans to start a consumer education programme within the year to help the consumer understand how to read and interpret CIBIL reports and realise the importance of a healthy credit lifestyle. CIBIL plans to do this through online training on the company’s website and also through consumer forums.

New solution
CIBIL and TransUnion, a global leader in credit and information management,  have recently launched Bureau Credit Characteristic, a new credit risk analytical solution which helps mitigate risks for lending institutions in India. This solution, comprising 258 credit characteristics, incorporates information on demographics, account utilisation, delinquencies and credit exposure. It helps in faster analysis, provides a better understanding of customer payment behaviour and saves business time and resources. CIBIL also plans to launch 2 new products— ‘Cibil Detect’, and a mortgage repository product in the next six months. Banks and credit bureaus will now have to ensure that the information on the CIBIL credit report is correct and updated. Now, customers can rightfully ask banks for their CIBIL credit report in case they are denied credit. Credit bureaus will now have to update incorrect data within 30 days or pay a penalty.
Commenting on this, Thukral said, “Initially, since many banks were not aligned on core banking systems data used to come to us on a quarterly basis. Today, most of our data has been coming on a monthly basis, so there is very little scope for errors.” In addition to this, CIBIL’s  technical teams are working with banks on an ongoing basis to improve data quality and  frequency of submission of data.

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