The Reserve Bank of India is now allowing higher limits for foreign direct investment (FDI) in credit bureaus. In a recent notification, the RBI said investors whose ownership is well diversified may pick up to 100 per cent stake in a credit bureau. Investors should have an established track record of running a credit bureau in a well regulated environment, the RBI added.
For investors with lesser competence the ownership will be limited to 49 per cent in a credit bureaus. Currently, India has four credit bureaus: CIBIL, Experian, Equifax and CRIF High Mark.
Investment by foreign portfolio investors has been limited to a maximum of 10 per cent. The investments by a person in a credit bureau are limited to 10 per cent of its equity capital. However, investments under FDI are permitted up to 100 per cent under automatic route, subject to certain conditions.
Source: Hindu Business