Mumbai, Oct 10 (PTI) The Reserve Bank on Thursday asked Asset Reconstruction Companies (ARCs) to become members of all credit information companies and submit the requisite data to them in the prescribed format.

As per the extant norms, ARCs had to be a member of at least one Credit Information Companies (CICs).

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Currently, there are four CICs in India -- Trans Union CIBIL, Experian, Equifax and CRIF High Mark.

In a circular, the central bank said it has decided to align the norms for ARCs with the guidelines applicable to banks and NBFCs with a view to maintain a track of borrowers' credit history after transfer of loans by banks and NBFCs to ARCs.

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"ARCs shall become members of all CICs and submit the requisite data to CICs as per the Uniform Credit Reporting Format prescribed by the Reserve Bank...," it said in a circular.

ARCs have been asked to put in place a system and processes to ensure compliance with the revised guidelines latest by January 1, 2025.

In another circular, the Reserve Bank said all credit institutions (CIs) will continue to report credit information of the borrowers on-boarded and reported to CICs prior to cancellation of their licence or certificate of registration to all the four CICs till the loan life cycle is completed or the credit institution is wound up.

(The above story is verified and authored by Press Trust of India (PTI) staff. PTI, India’s premier news agency, employs more than 400 journalists and 500 stringers to cover almost every district and small town in India.. The views appearing in the above post do not reflect the opinions of LatestLY)