Multiple choice

CIs (credit institutions) are required to become members of how many Credit Information Companies?

  1. Only one

  2. The number is at the discretion of the CIs

  3. CIs can decide to become or not to become a member

  4. All Credit Information Companies
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D Correct answer
Explanation

Excercising the powers conferred by sub-section (1) of Section 11 of the Credit Information Companies (Regulation) Act, 2005, Reserve Bank of India, being satisfied that it is necessary and expedient in the public interest, hereby directs that within three months from the date of this directive: (i) All Credit Institutions (CIs) shall become members of all CICs and submit data (including historical data) to them. Further, CICs and CIs shall keep the credit information collected/maintained by them, updated regularly on a monthly basis or at such shorter intervals as may be mutually agreed upon between the CI and the CIC in terms of Regulation 10 (a) (i) and (ii) of the Credit Information Companies Regulations, 2006. (ii) As a consequence of (i) above, one-time membership fee charged by the CICs, for CIs to become their members, shall not exceed Rs. 10,000 each. The annual fees charged by the CICs to CIs shall not exceed Rs. 5000 each.

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