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Regulatory Compliance

Credit Information Companies
Regulation Act

  • Overview
  • Methodology
  • Purpose
  • Our Approach
  • Benefits
  • Clients
  • FAQs

Overview: CICRA

The Credit Information Companies (Regulation) Act, 2005 (CICRA) is an Indian law that regulates credit information companies (CICs) and aims to promote efficient credit distribution. It establishes a framework for organisations operating as Credit Information Companies (CICs) in India. This law ensures responsible data collection, maintenance, and dissemination of credit information, creating a more efficient and secure credit system.

Credit Information Companies Rules, 2006

The Credit Information Companies Rules, 2006, were formulated under the Credit Information Companies (Regulation) Act, 2005. These rules provide detailed regulations for the operation, management, and supervision of credit information companies (CICs) in India. 

Key Provisions For Credit Information Companies Rules, 2006

Registration and Licensing

Specifies requirements and procedures for CIC registration, including capital and documentation, to be submitted to the

Functions and Obligations

Mandates CICs to collect, process, and disseminate accurate and confidential credit information, complying with data protection norms.

Data Furnishing and Accuracy

Requires banks and financial institutions to regularly furnish accurate and timely credit information to CICs, with mechanisms for error correction.

Rights and Obligations

For Credit Information Users it mandates that users, such as banks, use credit information for evaluating creditworthiness, inform borrowers, and maintain confidentiality.

Dispute Resolution Mechanism

Provides a grievance redressal system for addressing disputes over credit report inaccuracies, with CICs required to resolve issues promptly.

Registration and Licensing

Empowers the RBI to inspect and audit CICs for compliance, with CICs maintaining proper records and submitting periodic reports.

Penal Provisions

Outlines penalties, including fines and suspension, for non-compliance with CICRA 2005 and associated rules.


To ensure compliance with the Credit Information Companies Act 2005, organizations must use a structured methodology that includes defining the compliance scope, developing a comprehensive audit plan, and finalizing an audit schedule in conjunction with all relevant departments.

The procedure includes completing a thorough audit of data handling processes, security measures, and compliance with CICRA standards, followed by the creation of a full report and attestation of outcomes. The report includes an outline, specific findings, and actionable recommendations to ensure that all procedures are transparent, secure, and in accordance with regulatory requirements.

Why do organizations need it?

Organizations need to adhere to CICRA to ensure they handle credit information responsibly and securely. Compliance not only protects sensitive data but also fosters trust among consumers and financial institutions, ultimately contributing to a more stable and efficient credit market.

  • Adhering to the act helps organizations comply with Indian laws & regulations.
  • Reduce the risk of cyber threats by ensuring data security measures.
  • Enhanced accuracy & reliability of credit reports that benefit both customers & lenders. 
  • Enhance the company’s reputation by ensuring the high standards of data management.
  • Streamlining data-handling processes leads to more efficient operations.

Our Approach

We begin by defining the scope of the audit to ensure all relevant areas are covered, aligning with CICRA requirements. The Scope encompasses the work systems, the number of departments, and the location of the organization.

We begin by defining the scope of the audit to ensure all relevant areas are covered, aligning with CICRA requirements. The Scope encompasses the work systems, the number of departments, and the location of the organization.

The board members must streamline an audit plan after defining the audit's scope, aim, and criteria. The CICRA Audit plan must entail the nature, timing, and scope of tests of controls and substantive procedures. Auditors and board members should also evaluate the network security measures.

A proper audit schedule must be published with the consent of all parties after outlining what must be audited and what is not required. We finalize the audit schedule for the Credit Information Companies Act, 2005, coordinating with your team to minimize disruption while ensuring thorough coverage.

The auditors will review the pre-implemented documentation and controls in the auditee's organization after the audit schedule is made public. Our experts conduct a detailed audit, examining your data handling practices, security measures, and compliance with CICRA regulations.

The auditing body will record its findings, suggestions for improvement, and minor and significant non-conformities against the departments that were the subject of the audit. A summary report will be created from all of these observations and the standard checklist that was used.


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What is the Credit Information Companies (Regulation) Act, 2005 (CICRA)?

    The Credit Information Companies (Regulation) Act, 2005 (CICRA) is an Indian law that governs credit information businesses (CICs) and promotes efficient and secure credit distribution. It creates a framework for accurately collecting, maintaining, and disseminating credit information.

    Organizations must comply with the Credit Information Act to ensure responsible and secure credit information processing, avoid legal penalties, and improve credit report accuracy. This would increase market reputation and streamline data-handling processes for more efficient operations.

    Banking, financial services, Non-Banking Financial Companies (NBFCs), fintech, insurance, and any other industry that handles consumer credit information and personal data must adhere to CICRA to ensure responsible data management and improve credit information accuracy and security.