Short change: ‘Give customers a free copy of credit profile’

Report of the ‘Committee to recommend Data Format for Furnishing of Credit Information to Credit Information Companies (CICs)’ has been put up on RBI’s website for comments.

Published: March 24, 2014 3:23:52 am

Give customers a free copy of credit profile: RBI

Mumbai: Customers should be given a free copy of their credit profile as it would help in promoting financial discipline among loan seekers, an RBI report says. “The committee has suggested that providing customers with a free copy of their Credit Information Reports (CIRs) would help create awareness about the need to have credit discipline, enable customers to correct their behaviour and improve their score well before they plan to avail fresh credit of any kind…,” the report said.

The move would also help detect identity theft at an early stage, it added. Report of the ‘Committee to recommend Data Format for Furnishing of Credit Information to Credit Information Companies (CICs)’ has been put up on RBI’s website for comments. The committee, which recently submitted its report to RBI, has made wide ranging recommendations on issues relating to credit information, such as, increasing its coverage, format of reports and best practices to be followed by credit institutions, credit information companies (CICs) and the RBI.

CPSE Exchange Traded Fund to reopen for investors next month

New Delhi: Investors will get another chance to own a portfolio of bluechip PSU stocks offered in the CPSE Exchange Traded Fund (ETF) as the scheme will reopen for subscription in the first week of April. The New Fund Offer (NFO), which closed on March 21 after mopping up bids worth Rs 4,200 crore, is expected to see renewed inflows as the excess demand of Rs 1,200 crore may come in when the subscription reopens.

The government had targeted raising Rs 3,000 crore through the scheme, its first attempt to garner disinvestment proceeds via the mutual fund route. The NFO saw encouraging response as investors, both domestic and foreign, pumped in funds even as stock markets mostly remained range-bound. “The scheme will reopen for continuous subscription and redemption on or before April 4 instead of the earlier announced April 11, so as to give interested investors a chance to invest and trade freely,” a source said.

Sebi to soon notify non-tax proposals of mutual fund policy

New Delhi: Regulator Sebi is giving final touches to proposals aimed at bringing greater seriousness among mutual fund houses, by raising their minimum networth requirements and making it mandatory for them to contribute their own seed capital along with investors’ money. These proposals are currently going through the process of legal vetting, pursuant to which the Securities and Exchange Board of India (Sebi) would soon issue a detailed policy framework with necessary circulars and notifications, a senior official said.

These are part of a long-term mutual fund policy being worked out by Sebi, approval for which was granted by the regulator’s board last month. The proposals include making it mandatory for funds to contribute their own money in form of ‘seed capital’ amounting to one per cent of the amount raised. This amount is subject to a maximum of Rs 50 lakh through the lifetime of the scheme.

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