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June 23, 2016
All Scheduled Commercial Banks
Dear Sir / Madam
Reporting of Information on Investment in Commercial Papers and Unhedged Foreign Currency Exposures of the Borrowers to Credit Information Companies
Please refer to our circular DBOD.No.CID.BC.127/20.16.056/2013-14 dated June 27, 2014 advising banks to implement certain recommendations of the Committee to Recommend Data Format for Furnishing of Credit Information to Credit Information Companies (Chairman: Shri Aditya Puri) constituted by the Reserve Bank of India (RBI).
2. The recommendations that remain to be implemented relate to reporting of information concerning (i) investment of banks and All India Financial Institutions (AIFIs) in Commercial Papers (CPs) – Recommendation No.8.6, and (ii) Unhedged Foreign Currency Exposures (UFCE) of borrowers of banks and AIFIs – Recommendation No.8.14. The feasibility and operationalization of the collection and dissemination of information relating to these two items were examined in depth by the Technical Group on Credit Information set up by RBI and coordinated by CIBIL1.
It has been decided to capture the information on CPs and UFCE taking into account the inputs provided by the Technical Group.
3. The information on CPs issued by the companies shall be reported on a monthly basis to all the four credit information companies (CICs) by the bank which has been designated as the Issuing and Payment Agent (IPA) for the particular CP issue. However, if there are multiple IPAs for a single CP issue, they shall report to the CICs the details pertaining to the portion of the issue which is with them. This information shall be reported in the Commercial Data format in the fields given in the Annex. The IPA shall also report any default in the redemption of the relevant CP issue. It is clarified that the investing credit institutions need not report the information on CPs to the CICs.
4. The information regarding UFCE of individual borrowers shall be reported on a quarterly basis to all the four CICs by the lending bank (in the case of solo lenders) /consortium leader (in the case of consortium arrangements)/largest lender (in the case of multiple lending arrangements). This information shall be reported in the Credit Facility (CR) Segment of Commercial Data format in the fields given in the Annex.
5. The reporting requirements set out above shall be effective from July 1, 2016 i.e. from the credit information reports showing the position for the month of June 2016.
6. These instructions are being issued under sub-section (1) of Section 11 of Credit Information Companies (Regulation) Act, 2005.
Format for reporting information on investment in Commercial Papers and
1 Technical Group on Credit Information coordinated by CIBIL was set up by RBI based on recommendations of Aditya Puri Committee on Data Format for Furnishing of Credit Information to Credit Information Companies to review and suggest improvements to data formats. It has representation from all categories of banks, IBA, NBFCs and the CICs.
In order to make the process of registration of new NBFCs smoother and hassle free, the application form for registration of new NBFCs and the checklist of documents to be submitted have been revised. The number of documents to be submitted by the NBFC applicants has been reduced from existing set of 45 documents to 7-8 in the revised process.
Secondly, from now onwards, there would be two different types of applications for non-deposit taking NBFCs (NBFC-ND) based on Sources of Funds & Customer Interface as follows:
The processing of cases for Type I – NBFC-ND applicants would be on fast track mode. As these companies will not have access to public fund and will not have customer interface, they will be subjected to less intensive scrutiny / due diligence. However, CoR issued to Type I – NBFC-ND companies will be conditional. These companies will be prohibited from accessing public funds and having customer interface. In case these companies intend to avail public fund or intend to have customer interface in the future, they are required to take approval from Reserve Bank of India, Department of Non-Banking Regulation.
Following forms have been revised and uploaded on the RBI website-
Application form has been changed in the online COSMOS Application of the Reserve Bank of India, except in the case of CIC-ND-SIs where a separate application form has been prescribed. The application form mentioned above shall be applicable to new applications of Type I – NBFC-ND and Type II – NBFC-ND (including NBFC-MFI, NBFC-Factor and NBFC-IDF).
Furthermore, with the aim to centralise the process, the application for new NBFCs may be submitted to Central Office, Department of Non-Banking Regulation directly at the following address:
Chief General Manager
It is further advised that the checklists mentioned are indicative and not exhaustive. The Reserve Bank, may, if necessary, call for any further documents to satisfy itself on the eligibility of the company seeking registration as NBFC. In the event of the Reserve Bank calling for further documents in addition to those mentioned in the checklist, the applicant company must respond within a stipulated time of one month.
It may be recalled that in the First Bi-monthly Monetary Policy Statement – 2016-17, it was stated that in order to make the process of registration of new NBFCs smoother and hassle free, it has been decided to simplify and rationalise the process of registering new NBFCs. The new application forms will be simpler and the number of documents required to be submitted will be reduced to a minimum.
Press Release : 2015-2016/2935
1 “Public funds” shall include funds raised either directly or indirectly through public deposits, commercial paper, debentures, inter-corporate deposits and bank finance but excludes funds raised by issue of instruments compulsorily convertible into equity shares within a period not exceeding 10 years from the date of issue as defined in Regulatory Framework for Core Investment Companies issued vide Notification No. DNBS (PD) CC.No. 206/03.10.001/2010-11 dated January 5, 2011.
2 “Customer interface” means interaction between the NBFC and its customers while carrying on its NBFI business as defined in Non-Systemically Important Non-Banking financial (Non-Deposit Accepting or Holding) Companies Prudential Norms (Reserve Bank) Directions, 2015 issued vide Notification No. DNBR. 008/CGM (CDS) -2015 dated March 27, 2015.
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