In line with the stipulations of the credit flow-regulating Credit Information Companies Act (CICA), 2005, the Credit Information Bureau India Ltd - CIBIL - has been granted 'in-principle approval' for Certificate of Registration by the Reserve Bank of India.

The certification allows companies in the telecommunications and insurance sectors to access credit data. Previously, the credit data could be accessed and shared by financial institutions such as banks and NBFCs.

While the CICA does not make it mandatory for the telecom and insurance firms to contribute data, they would be allowed to access data from CIBIL, which presently has more than 135-million accounts directory, thanks to contributions from almost 160 financial and non-banking institutions. After receiving the final registration and operational guidelines, the telecom and insurance companies can collect information from more sources.

The CIBIL functioning includes providing a credit score of up to 900, depending upon the borrower's liabilities and past payment records, and a deferred installment payment affects the credit score.

According to The Times of India, Terry McCafferty, CIBIL's Chief Operating Officer, talking about the recent 'in-principle' approval said: "The approval gives us the right to continue our operations and allows telecom companies and insurers to access the CIBIL database. We need to develop and enable our systems so that all this can be put to effect soon."