Module: | Priority Sector, Consumer Protection & Digital Lending
Q98: Which of the following statements regarding the membership and registration of Credit Information Companies (CICs) are correct?
1. A Credit Institution (CI) must become a member of all the CICs registered with the Reserve Bank of India.
2. The maximum annual fee a CIC can charge a Credit Institution is ₹5,000.
3. FICO India Credit Services Private Limited is one of the four CICs registered under the CICRA, 2005.
4. The maximum one-time membership fee a CIC can charge a Credit Institution is ₹10,000.
Which of the statements given above is/are correct?
2. The maximum annual fee a CIC can charge a Credit Institution is ₹5,000.
3. FICO India Credit Services Private Limited is one of the four CICs registered under the CICRA, 2005.
4. The maximum one-time membership fee a CIC can charge a Credit Institution is ₹10,000.
Which of the statements given above is/are correct?
✅ Correct Answer: A
The correct answer is A. The RBI directions mandate that all Credit Institutions must become members of all registered CICs to ensure comprehensive credit reporting.
To ensure affordability, the fees are capped: the maximum one-time membership fee is ₹10,000 and the maximum annual fee is ₹5,000.
Statement 3 is incorrect because the four registered CICs are CRIF High Mark, Equifax, Experian, and TransUnion CIBIL; FICO is not a registered CIC in this context under CICRA 2005.
To ensure affordability, the fees are capped: the maximum one-time membership fee is ₹10,000 and the maximum annual fee is ₹5,000.
Statement 3 is incorrect because the four registered CICs are CRIF High Mark, Equifax, Experian, and TransUnion CIBIL; FICO is not a registered CIC in this context under CICRA 2005.