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MUMBAI, May 9

STATE Bank of India has informed the BSE that it had subscribed to the initial capital of the Credit Information Bureau of India Ltd (CIBIL) to the tune of Rs 3.5 crore of the issued share capital of Rs 25 crore. This is the first call option that the bank has exercised.

SBI is one of the promoters of CIBIL and along with HDFC holds 40 per cent in the company. Trans Union International and Dun and Bradstreet Information Services India Pvt Ltd each hold 10 per cent in the venture.

The monetary and credit policy of October 2001 had said that in order to operationalise the process of collection and dissemination of the data on CIBIL, the RBI would constitute a working group.

One of the recommendations of the working group was that the company should take on RBI's role of collection and dissemination of information on suit- filed accounts from April 1, 2002.

The group had stressed the need for a master legislation to establish the basic regulatory framework so that banks would provide all the credit information that CIBIL requires.

The basic thrust of the group was to examine the role that the CIBIL could play in the absence of a legislation and if the bureau could be made operational at least to a limited extent.

According to some bankers, since the legislation required to get CIBIL in place would take awhile, banks and RBI should formulate guidelines to empower CIBIL to function without the legislation.

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