Banking · Credit Information Regulations
Under the regulatory framework and standard practices in India, what is the maximum period for which Credit Information Companies (CICs) can retain and report negative credit history, such as a settled default?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1The Credit Information Companies (Regulation) Act, 2005 mandates the removal of all negative data after 2 years to aid the borrower's credit access.
- 2Only the reporting lender can decide how long the negative information remains on the report; the CIC has no regulatory limit.
- 3CICs can retain and report negative credit history, like a settled default, for a maximum period of 7 years from the date of settlement or write-off.✓
- 4CICs are legally required to immediately remove any default information as soon as the debt is settled.
Correct answer
CICs can retain and report negative credit history, like a settled default, for a maximum period of 7 years from the date of settlement or write-off.
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