d. roms. the initiative with regard to the setting up of an electronic data interchange ( edi ) in the banking sector for the benefit of the exporters and importers bears mentioning. edi provides several benefits to the corporates such as operational efficiencies and cost savings by elimination of paperwork, logistical benefits by better scheduling and reduced stockholding etc., and strategic benefits through competitive and advantage and access to new markets. under the edi project, one of the major benefits for the exporters is that the rbi has abolished gr forms for export transactions. the exporters can now fill up a common statutory declaration form ( sdf ) for the customs from where the data relevant to the banks and the rbi can be extracted. presently, edi is working at 23 ports covering 80 per cent of exports. under the edi project, bank branches at 114 export intensive centers identified by the ministry of commerce are to be provided connectivity with the customs authorities. the reserve bank has provided the enabling conditions for promotion of trade and investment, both domestic and international, by ensuring adequate liquidity, a competitive interest rate regime measures to encourage decentralized decision making and ease procedures in the credit delivery systems and most importantly financial stability in the midst of a world economy beset by uncertainty and recessionary trends. it is now necessary for market participants to have enough confidence to make investment decisions. the reserve bank, on its part, would continue to ensure financial stability, strengthening of prudential norms with the strategy of convergence of international best practice, consistent with our specific needs, as also progressive strengthening of the supervisory framework. accordingly, the focus of our policy initiatives would be on streamlining banking operations in order to reduce transaction costs, infusing flexibility into the system, upgrading risk management systems, enhancing the level of compliance by banks with accounting standards, operationalising consolidated accounting practices and last and most important of all, providing the public with a financial system they can trust. while there is substantial progress in the financial sector reforms initiated in 1991, the accent at the present time is an implementation of the reforms at the grass roots level. in this context, the endeavour is to facilitate ease of transactions by the common persons, further broadening of the consultative process and continued emphasis on the institutional capacity to support growth consistent with stability. furthermore, the credit delivery system is being strengthened to ensure that financing gaps do not constrain the acceleration of growth. governor, dr. y. v. reddy, as part

the banks and fis and putting them on guard against the defaulters to other lending institutions. in february 1999, reserve bank of india had also introduced a scheme for collection and dissemination of information on cases of willful default, of borrowers with outstanding balance of rs. 25 lakh and above. 1 it is to be noted that these lists are negative in nature. while this information would, no doubt, be of use for aiding banks and fis in taking decisions in regard to sanctioning of loans, the requirement of an adequate, comprehensive and reliable information system on borrowers through an efficient database was felt by the reserve bank, central government, credit institutions and other players in the banking and financial sector. the reserve bank constituted a working group2 under the chairmanship of n h siddiqui to explore the possibilities of setting up a credit information bureau in india. the working group observed that it would not be possible to set up a world class credit information company within the existing legal framework. the legal prohibition on disclosure of information contained in various laws relating to banking did not permit banks and financial institutions to share credit information with the credit information companies. besides the power vested with the reserve bank of india under chapter iii - a of the reserve bank of india act, 1934, to collect and furnish credit information from banks or financial institutions cannot be delegated by it to another institution. the working group, therefore, observed that amendments would be required in various enactments. the working group in its report, submitted in october 1999, recommended ( a ) enactment of a legislation for facilitating collection and sharing of information by the proposed bureau and ( b ) to amend certain acts relating to banking to permit sharing of information with the said bureau. on the recommendation of the working group in january 2001, a company by the name of cibil was promoted by sbi in collaboration with hdfc and two foreign technology partners. the company commenced operations by pooling information on suit - filed accounts as also transactions on which the borrower had given consent for sharing amongst the user group. the credit information companies ( regulation ) act, 2005 was thus enacted3 with a view to providing necessary legislative support to the business of credit information and for the regulation of credit information companies and to at present, the data relating to non - suit filed accounts for the above lists are being disseminated by rbi to banks and fis for their confidential use whereas the lists pertaining to suit - filed cases are in the public domain as published by the credit information