The Credit Information Companies (Regulation) Act, 2005.
Administered Ministry: Ministry of Finance / Department of Financial Services
Act details
| Short title | The Credit Information Companies (Regulation) Act, 2005. |
|---|---|
| Long title | An Act to provide for regulation of credit information companies and to facilitate efficient distribution of credit and for matters connected therewith or incidental thereto. |
| Act number | 30 of 2005 |
| Act year | 2005 |
| Enactment date | 23 Jun 2005 |
| Ministry | Ministry of Finance / Department of Financial Services |
| Department | Department of Financial Services |
| Jurisdiction | Central (Parliament of India) |
| Sections | 38 |
| Schedules | 1 |
| Status | Not repealed |
| Last checked on India Code | 29 Oct 2026 |
| Source | India Code, Government of India |
Summary
Summary of the Credit Information Companies (Regulation) Act, 2005
Key Provisions
1. Registration & Eligibility:
• Mandatory registration with the Reserve Bank of India (RBI) for Credit Information Companies.
• Minimum capital requirements: Authorised ₹30 Crores, Issued ₹20 Crores, Paid-up (75% of Issued).
2. Functions & Restrictions:
• Permitted: Collecting, processing, and providing credit information, credit scoring, and specified research.
• Prohibited: Engaging in non-specified businesses.
3. Membership & Information Sharing:
• Mandatory Membership for Credit Institutions in at least one credit information company.
• Confidentiality & Security of credit information, with procedures for collection and furnishing.
4. Regulatory Oversight: - RBI Powers: Policy determination, direction giving, and inspection.
• Rule Making: By the Central Government and RBI.
5. Dispute Resolution & Confidentiality:
• Mechanisms: Conciliation or arbitration under the Arbitration and Conciliation Act, 1996.
• Strict Confidentiality Provisions.
Legislative history
Legislative History:
The Credit Information Companies (Regulation) Act, 2005
Short Title The Credit Information Companies (Regulation) Act, 2005
Act Number / Year Act No. 30 of 2005
Act ID (India Code) 200530
Presidential Assent Date June 23, 2005
Enforcement Date December 14, 2006
Nodal Ministry Ministry of Finance
Precedent & Statutory Rationale
1. Absence of a Formal Regulatory Framework:
o Prior to 2005, India lacked a comprehensive statutory framework governing the collection, processing, and sharing of consumer and commercial credit data. Although entities like the Credit Information Bureau (India) Limited (CIBIL) were established around 2000, they operated without a dedicated legislative backing.
2. Facilitating Efficient Credit Distribution & Mitigating NPAs:
o Rapid economic expansion and retail credit growth necessitated a formal mechanism to evaluate borrower creditworthiness accurately, reduce non-performing assets (NPAs), and protect consumer data privacy through standard legal accountability.
Parliamentary Trajectory & Enactment
• Formulation: Prepared by the Ministry of Finance in consultation with the Reserve Bank of India (RBI) to establish an institutional mechanism for credit registries.
• Parliamentary Passage: Debated and passed by both Houses of Parliament during the mid-2005 session.
• Presidential Assent: Received formal Presidential Assent on June 23, 2005, entering the statute book as Act No. 30 of 2005.
• Enforcement: Enforced on December 14, 2006.
• Source: Official Records of Parliament, India Code, and Ministry of Finance (Department of Financial Services)