have reliable information about all the borrowers in the financial system. ( ii ) investment in credit information companies 24. rbi has issued a revised directive on november 29, 2013, allowing higher fdi limits to entities which have an established track record of running a credit information bureau in a well regulated environment. this regulatory measure is aimed not only at bringing in the much needed foreign equity support but also to keep intact competition in this sector. as a result of this measure, the foreign partners of the cics are taking steps to increase their equity stakes in the cics and thereby continue to bring in foreign technology support to this long gestation capital intensive industry. conclusion 25. before i conclude, let me revisit the reasons for why the credit information bureaus including cibil, have not received the level of success they would have expected, even after a decade of their existence. in essence, the two users of the credit information, the lending institutions as well the consumers are still wary of the outputs generated by the cics. while on the one hand, the lenders do not see compelling reasons to subscribe to the cic reports for want of appropriate information or analytics, the consumers on the other hand are still sceptical about the authenticity of the cirs. there have been numerous complaints about the cics handing out incorrect reports to the consumers who have to then run from pillar to post to get these corrected. the grievance redressal system in this area, in fact, needs a thorough overhaul. thus, going forward, the challenge for the cics and indeed, for cibil, which has a virtual monopoly over this business is to address the twin concerns that i have mentioned. the purpose of having cics in the system would be best served when the credit needs of deserving people are met in a timely manner and at a reasonable cost. 26. i am sure that the conference would throw up some ‘ actionable ’ ideas which would go a long way in not only spreading awareness about the credit information system in the country but also improving it. i once again congratulate cibil for reaching a significant milestone in their journey and thank them for inviting me to be a part of this conference. i wish you all a very fruitful deliberation ahead. thank you! references : the evolution of credit bureaus in asia - pacific - dr. rita chakravarti and beng - hai chea ( august 2005 ) bis central bankers ’ speeches role and effects

k c chakrabarty : transforming credit information into action – issues and challenges keynote address by dr k c chakrabarty, deputy governor of the reserve bank of india, at the sixth annual credit information conference, organized by cibil – credit information bureau ( india ) ltd –, mumbai, 20 march 2014. * * * assistance provided by shri rajesh jai kanth and ms. jayanthi n. in preparation of this address is gratefully acknowledged. 1. shri m. v. nair, chairman, cibil ; shri r. v. verma, cmd, national housing bank ; shri m. v. tanksale, chief executive, indian banks ’ association ; shri rajiv sabharwal, executive director, icici bank ; shri arun thukral, managing director, cibil ; shri satish pillai, chief operating officer, cibil ; delegates to the conference ; friends from the media fraternity ; ladies and gentlemen! it is a pleasure for me to be present here this morning to deliver the keynote address at the sixth annual credit information conference organized by cibil. it is heartening to note that cibil has completed 10 years of successful operations of its consumer bureau in india. while i congratulate the entire team of cibil on this occasion, i must also sound a word of caution amidst the euphoria that this occasion brings in. it is a time for cibil and indeed for all the credit information companies in the country to introspect and reflect on what the industry has achieved over the last decade and whither to from here? the spurt in the stressed assets in the banking system has put a spotlight on the effectiveness of the credit information companies in the country. with huge increase in the data / information availability, could they have sounded a timely warning about the impending deterioration in the quality of assets in the banking system? 2. as the pioneer of the credit information services in the country and as the most dominant player in the industry, cibil has a very critical role in how industry responds to the current challenges and adapts itself to remain relevant. in the financial services industry, the dominant player has to be much more resilient, much more responsive and much more restrained than others. these are the qualities you must develop. cibil has a tremendous responsibility, a responsibility to not only propagate the usage of credit information by the lenders but, at the same time, of ensuring that the consumers see merits in