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The objective of the Credit Information (Companies Regulations Act),2005 is to provide information and data about credit cards, loans, and details related to them. Banking Institutions Non-banking financial institutions are generally the regular customer of credit information companies. These companies perform their work in a specific way. There are various companies available that provide credit information to people through their online websites and mobile applications. These companies gather all information about all the individual and credit reports based on their financial history. These credit reports have a vital role to play because they help the banks and other financial institutions recognize the worthiness of credits of an individual who wants to apply for any kind of loan or credit card.
The objective of Credit Information (Companies Regulations Act) 2005
The objective of the Credit Information (Companies Regulations Act),2005 is to provide information and data about credit cards, loans, and details related to them. Banking Institutions Non-banking financial institutions are generally the regular customer of credit information companies. These companies perform their work in a specific way. There are various companies available that provide credit information to people through their online websites and mobile applications. These companies gather all information about all the individual and credit reports based on their financial history. These credit reports have a vital role to play because they help the banks and other financial institutions recognize the worthiness of credits of an individual who wants to apply for any kind of loan or credit card.
In India, the credit information companies are affiliated with the Reserve Bank of India and it is governed by the Companies Regulations Act 2005 and many other laws and rules made by the Reserve Bank of India. The objective of the credit information Companies Regulations Act 2005 is to regulate the actions of credit information companies in the country. Another feature of this act was to efficiently and effectively distribute the credits, loans, and matters connected to it equally among the people.
Credit Information Companies Reports or CIC Reports
Generally, credit information Companies joint the public data, credit transactions, and payment histories of businesses and individuals. The data is being gathered from various authentic sources and the companies create a report based on the data gathered them. The credit information Companies also format a score report based on credit reports of a business and individuals. Generally, the credit score in the companies is from 300 to 850, and this 750 score is considered a good score. The reports formed by them are called CIC Reports. Not everybody has the access to these reports. People such as Insurance companies, collection agencies, Employers by the permission of authorized people, and credit grantors can only get access to these reports.
Credit Information Companies (Amendment) Regulations, 2017
Credit Information Companies (amendment) Regulations 2017 are part Credit Information Companies Regulations Act 2005 which further leads to the amendment of credit information companies Regulations, 2006. Credit Information Companies (Amendment) Regulations, 2017 came into force on the date of their publication in the official gazette. This act is also made by the Reserve Bank of India.
Conclusion
The objective of the Credit Information (Companies Regulations Act),2005 is to provide information and data about credit cards, loans, and details related to them. Banking Institutions Non-banking financial institutions are generally the regular customer of credit information companies. These companies perform their work in a specific way. There are various companies available that provide credit information to people through their online websites and mobile applications. These companies gather all information about all the individual and credit reports based on their financial history. Credit Information Companies (amendment) Regulations 2017 are part Credit Information Companies Regulations Act 2005 which further leads to the amendment of credit information companies Regulations, 2006.
