CRILC: Why it was set up by RBI ?

Central Repository of Information on Large Credits (CRILC) has been constituted by RBI  in 2014, to collect, store, and disseminate credit data to lenders. Banks/Financial Institutions are expected to report findings to CRILC.

The Reserve bank has created the CRILC of commercial banks, all India financial institutions and certain non-banking financial companies with multiple objectives, which, among others, include strengthening offsite supervision and early recognition of financial distress.

It requires the banks to provide credit information to CRILC about their borrowers with an aggregate fund-based and non-fund based exposure of and over Rs.5 Crores (Rs.50 million). They are also required to report the (SMA) Special Mention Account status of their borrowers to CRILC.

OBJECTIVE OF CRILC

The CRILC was built primarily with the objective  to help financial institutions and banks to assess their non-performing assets (NPAs) and also share this information with other institutions.

It also requires the financial institutions to notify  the status of their stressed borrowers and submit the information to a central database of the Reserve Bank of India.

Earlier in its bi-monthly monetary policy review, the RBI had announced to bring UCBs with assets of Rs 500 crore and above under the CRILC reporting framework.

Aggregate exposure will include all fund-based and non-fund based exposure (like partial credit enhancement) including investment exposure on the borrower. To start with, UCBs will be required to submit CRILC report on quarterly basis with effect from December 31, 2019.

 

Thus, in a nutshell CRILC is a collaborative system built by RBI to help banks and financial institutions evaluate their NPAs and share information with other institutions as alerts.

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