The Reserve Bank of Indian stated on April 29th that it would complete the processing of applications for setting up Credit Information Companies by June 30, 2008. 

In April 2007 the Reserve Bank had invited applications from companies interested in continuing/commencing the business of credit information. The last date for submission of such applications was July 31, 2007. In response, 13 applications have been received.  The Reserve Bank of India has declined in naming the applicants.  

The Reserve Bank of India stated earlier this year that foreign investments in credit information companies (credit bureaus) will be limited to 49%.  Subsequently Equifax (49%) teamed up with Tatas Capital (25%) and CRISIL Rating Agency (S&P)(26%).   The Equifax consortium intends to invest between US$ 4.5 to US$ 20 million.  Experian (49%) teamed up ICICI (largest retail and commercial bank)(19.9%), Axis Bank (11.1%), HDFC Bank (10%) and Centurion Bank of Punjab (10%).   The Experian consortium intends to invest US$ 12.5 to US$ 15 million.  A newcomer called High Mark Credit, backed by its technology partner CBCInnovis and various venture capital firms has also applied for a license.  High Mark Credit has also teamed up with Fair Isaac. 

An external High Level Advisory Committee (HLAC) (Chairman: Dr.R.H.Patil) has been set up by the Reserve Bank for screening the applications and recommending the names of the companies to which certificates of registration can be granted by the Reserve Bank. Source: Reserve Bank of India Press Release

BIIA Newsletter May – 2008 Issue