RBI asks banks to use information from CRILC to open current account

RBI asks banks to use information from CRILC to open current account

By PTI | Jul 02, 2015, BUSINESS STANDARD, MUMBAI:

With a view to improve credit discipline and reduce NPA level, the Reserve Bank today asked lenders to make use of credit information available with

Central Repository of Information on Large Credits (CRILC) for opening of current accounts.Banks are advised to make use of the information available with CRILC and not limit their due diligence to seeking NOC from the bank with whom the customer is supposed to be enjoying the credit facilities as per his declaration, it said in a notification.

"Banks should verify from the data available in CRILC database whether the customer is availing of credit facility from another bank. Further banks may also seek No Objection Certificate from the drawee bank where the initial deposit to current account is made by way of a cheque," it said.

The Reserve Bank said that it received complaints against banks for opening current account without following due diligence. The RBI has set up CRILC to collect, store, and disseminate data on all borrowers' credit exposures.

Banks and financial institutions are required to report information to CRILC