New Delhi: The Finance Ministry has suggested to the Commerce and Industry Ministry that the foreign investment cap on credit information companies be placed at 49 per cent. The Department of Financial Services in the Finance Ministry has suggested the cap on such companies to the Department of Industrial Policy and Promotion (DIPP) in the Commerce and Industry Ministry.
Currently, there is no specific policy on foreign investments in credit information companies. The proposed cap will comprise FDI and foreign portfolio investment via FIIs. Banks, financial institutions, State financial corporations, non-banking financial companies, credit card companies and housing finance companies are often keen to gain a full picture of the payment history of credit applicant. In India, Credit Information Bureau (India) Ltd or CIBIL, which was incorporated in 2000, was the first to enter the credit information market. With growing consumerism, credit information market has grown tremendously and more players, including credit rating agencies, are eyeing this market. CIBIL has diversified shareholding comprising certain commercial banks, foreign companies and non-banking finance companies.
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