CRILC Full Form

The full form of CRILC is the Central Repository of Information on Large credits. It is constituted by the Reserve Bank of India to collect,store and disseminate credit data to lenders.It is a guideline for scheduled commercial banks,all financial institutions in India and some of non banking-financial institutions to tackle the problems related to NPA borrowers.The Bank is required to furnish data on all their borrowers which have an aggregate non fund based and fund based exposure of 5 crore and above.CRILC database provide information about customers and their loan status in all Banks of the country.CRILC aims at early detection of financial crisis.

What Is CRILC?

CRILC is a large repository of data related to credits. It is constituted by RBI to Urban Bank to all banking and non-banking financial institutions.The Banks should submit credit information on a periodic basis to this Repository.The data is shared between banks and loan status of their customers.All Scheduled Commercial banks and four All India Financial Institutions (NABARD, EXIM BANK, NHB and SIDBI) report to CRILC.

History Of CRILC

The CRILC was built in 2014 precisely to help financial institutions and banks to assess their non-performing assets (NPAs) and also share this information with other institutions. From April 01, 2018, the reporting is mandated to be on a monthly basis with reporting on weekly basis of all borrower entities.

What Is SMA?

SMA is a Special Mention Account. It is a loan or credit account that shows identity and manages unpaid debts.This is considered as an account that does not generate any benefit for the bank.They can further be classified into three categories as follows:

• Category1: SMA 0- An account in which principal and interest will be unpaid for 30 days after payment due date.

• Category2: SMA 1 - An account in which principal and interest will remain unpaid for 30-60 days

• Category3 SMA 2- A loan amount and interest that is due for 61 days and less than 90 days.

What Is NPA?

If an account does not give any income to a bank that is called a Non Performing Asset or NPA.It is a credit or loan that is overdue for more than 90 days.An Overdraft due for more than 180 days is also NPA.

What Are The Operational Guidelines Of CRILC?

The operational guidelines for reporting the CRILC are as follows:

Banks should submit CRILC report on quarterly basis

Large exposure should be reported before 30 days of specified period.

There are all total three sections of CRILC– UCBs return

1. Section 1: Exposure to Large Borrowers, The Bank should report all large credit information(fund-based, non-fund based and investment exposure) of ₹5 crore and above.

2. Section 2: The bank needs to report the data on the amount written off, if any, for borrowers whose technically or prudentially written off amount is ₹5 crore or more and which are not reported in Section 1.

3. Section 3: Reporting of balance in Current Account- The Current Account Balance of all Account holders should be reported.especially of Amount 1 crore and above.

Failure in Reporting the data will lead to a penalty for the Bank.

Which Data Is Included In CRILC?

• PAN-Permanent Account Number as unique identifier

• Name and group name of Borrower.

• Industry, subsector code

• Asset Classification

• Internal rating & external rating

• Credit Information

• Lender Information

• SMA data

• NPA data if available

These are some of the data collected for CRILC.

How is CRILC Data Shared?

Under Section 45E of RBI Act, 1934 and section 28 of BR Act, 1949 sharing of data outside the banking system is strictly prohibited.CRILC data is confidential.

• CRILC data is shared in public interest only in consolidated form as decided by RBI.The name of Borrower or Financial Institution is not disclosed.

Advantages of CRILC

• The Banks can get a detailed report of Borrowers and their liabilities in any Banks of the country.

• Banking Systems of the Whole Country can be Connected and inspected by the Reserve Bank of India.

• Banks get email alerts on SMA 2 borrower as default, RFA/Fraud.

• Non-cooperative borrower's data is available in the CRILC database.

• NPA can be minimized

• Banks income can be increased and safe guarded.

• Financial Frauds can be easily monitored.

• Lending Power of Banks can be monitored.

• Financial Distress can be minimized.