Wednesday, June 15, 2016

RBI allows up to 100% FDI in credit information firms

A credit information company aggregates and analyses data of individuals and businesses and puts out a credit score which is an indicator of creditworthiness of that individual or business. Higher the credit score, lower is the chance of default by that individual or business. Currently, India has four credit information companies - CIBIL, Experian, Equifax and CRIF High Mark. Investment by foreign portfolio investors has been limited to a maximum of 10 per cent. Currently, investments by a person in a credit bureau are limited to 10 per cent of its equity capital. However, investments under FDI are permitted up to 100 per cent under automatic route, subject to certain conditions.

0 comments:

Post a Comment