High Mark gets green signal from RBI to start credit bureau
High Mark will be the country's fourth credit bureau after CIBIL, Experian and Equifax
High Mark Credit Information Services today became the fourth credit information company in the country to receive the approval of the Reserve Bank of India (RBI) to operate as a credit bureau.
The other three that in operation are Credit Information Bureau of India (CIBIL), Experian Credit Information Company of India and Equifax Credit Information Services. TransUnion International Inc holds a 19.99% stake in CIBIL.
Experian started operations in India in August this year, and was followed by Equifax, which commenced operations last month, in partnership with Bank of Baroda, Bank of India, Kotak Mahindra Prime Ltd, Religare Finvest Ltd, Sundaram Finance Ltd and Union Bank of India.
The RBI issued provisional licenses to Equifax, Experian and High Mark in April 2009 for setting up credit bureaus. In November 2008, the central bank allowed foreign direct investment of up to 49% in credit information companies, with a ceiling of 10% of the total voting rights for any single investor group.
In July this year, Micro-finance Institutions Network (MFIN), a network of more than 40 micro-finance companies, invested Rs2 crore for a 5% stake in High Mark. The credit information to be provided by High Mark will be useful for the business of these companies, more so at a time when the micro-finance business has been afflicted by mass defaults on loan repayments in the states of Andhra Pradesh, Karnataka and West Bengal.
Experian, TransUnion and Equifax are the largest credit bureaus in the world. High Mark is a start-up promoted by Professor Anil Pandya and Anuj Desai. According to media reports, venture capital firm Battery Ventures bought a 10% stake in High Mark for about $1 million last year. In 2005, Professor Pandya founded High Mark and in 2007 the company applied to the RBI for a license to operate as a credit bureau.
More in Moneylife
Tax Tentacles – 6: Expanding the Tax Net +1019 views
TODAY'S TOP STORIES
Moneylife Foundation: Maharashtra CM Fadnavis says financial literacy empowers citizens
Grab a Discount Coupon here
- Bought a home? Great! But don’t forget to deduct TDS
- Tax Tentacles – 4: Redefining What to Tax
- No Achche Din for PSU Shareholders
- Nifty, Bank Nifty, Sensex still on an uptrend – Wednesday closing report
- Aruna Shanbaug: The fighter-survivor helped over 42 years by KEM staff
- Hardly any foreign investment into India: China daily
- Who Does the Modi Sarkar Really Represent?
- Black Money Bill not sufficient to eliminate the problem, says Dr Subramanian Swamy
- Dispense with TDS certificates and save tax payers from harassment!
- SEBI's Lip Service on Governance
- Is your property insured for a Nepal-like earthquake?
- Why no Chief CIC in Modi Raj?
What's your say?
What you said
Thanks for casting your votes! View Previous Polls