MUMBAI: Ahead of the commercial launch of payments banks, credit information companies (CICs) have urged RBI to ensure these newbies in the banking space become their members and share data on the transactions "Payments banks will not be into lending, but the transactions which they undertake will help understand borrowers. Therefore, we have requested the RBI to make them our members," Experian Credit Information Company Managing Director Mohan Jayaraman told PTI.He said RBI has been receptive to the idea and has shown its willingness for the demand, but the changes cannot happen overnight as it will require amendments to the Credit Information Companies (Regulation) Act.Jayaraman further said even though payments banks will not be lending themselves, the data they share will help analyse borrower behaviour in a better way and will help the broader banking system. While some like Tech Mahindra and Cholamandalam have since opted out, some like Airtel have received the final approvals.Others in the fray include corporate giants like Reliance Industries, Aditya Birla Group, PayTM etc. Many of them are already existing non-banking lenders or have tied up with banks, which are members of CICs. Similarly, with insurance as well, the ball lies in regulator Irdai's court, he said.It can be noted that getting telecom and insurance transactions, apart from utility payments, is among the prime issues raised by the industry in the past.

Source: Economic Times August 21, 2016 07:04 UTC