What changed
RBI notes that three additional CICs (Experian, Equifax, High Mark) have been issued Certificate of Registration. UCBs must now report suit-filed accounts of ₹1 crore and above (doubtful/loss) and suit-filed accounts of willful defaulters of ₹25 lakh and above to CIBIL and/or any other CIC that has obtained CoR from RBI and of which the bank is a member. These CICs will disseminate the data on their websites.
What it means for you
UCBs face tighter credit discipline as suit-filed and willful defaulter data becomes publicly accessible via multiple CICs. This increases pressure on banks to improve recovery and due diligence. Lenders must ensure accurate and timely submission to avoid reputational and compliance risks.
What you must do
- Submit quarterly lists of suit-filed accounts of ₹1 crore and above (doubtful/loss) to CIBIL and/or any other RBI-registered CIC your bank is a member of.
- Submit quarterly lists of suit-filed accounts of willful defaulters of ₹25 lakh and above to CIBIL and/or any other RBI-registered CIC your bank is a member of.
- Verify your bank's membership with at least one RBI-registered CIC and ensure data submission deadlines are met.
- Update internal systems to track and report suit-filed and willful defaulter accounts accurately each quarter.
Who it affects
Primary Urban Co-operative Banks (UCBs), Credit Information Companies (CICs) like CIBIL, Experian, Equifax, High Mark, Borrowers with suit-filed accounts of ₹1 crore or more, Willful defaulters with dues of ₹25 lakh or more
What are the thresholds for reporting suit-filed accounts and willful defaulters?
Suit-filed accounts classified as doubtful or loss with an amount of ₹1 crore and above must be reported. Willful defaulters with dues of ₹25 lakh and above must also be reported.
How often must UCBs submit this data to CICs?
The data must be submitted quarterly, as at the end of March, June, September, and December.
Which CICs can UCBs report to?
UCBs can report to CIBIL or any other CIC that has obtained a Certificate of Registration from RBI and of which the bank is a member, such as Experian, Equifax, or High Mark.