High Mark Credit Information 1.

So far we have seen number of factors which come into play while taking any credit decision. All are related with the physical factors. What the borrower proposes to do with the borrowed funds? Is the proposition economically viable? Is it technically feasible? What is he going to manufacture? In what quantity? Or purchase of loan? And so on so forth. Most of these factors are measurable, quantifiable. 2. However there is one more factor, i.e. the character or integrity of the borrower. It is very difficult to really know about the character of the applicant. It is not a quantifiable factor. Only information about the past and present dealings of the applicant with our bank and with other banks, or financial institutions will give some clues about the intentions and the character of the applicant. 3. The problem is compounded as there are number of avenues of getting financial resources readily available to any person. There are number of banks, credit societies, non- banking financial institutions, each competing with others to get more business. Post liberalization of banking industry, there was rapid growth of the banks and other financial institutions both in number of branches and volume of the business. Some unscrupulous persons have taken disadvantage of this situation. 4. There are many a cases where a person has taken credit facilities from number of banks for various purposes or for the same purpose with same security or non-existent security. Some persons made it a fine art of duping the banks, by floating a company, borrowing huge funds, stop repayment, close the unit, abscond, go to another location, float a new company and restart whole game afresh with ill-gotten money. 5. Lack of authentic information about the antecedence of the applicant was one of the stumbling blocks in making sound credit decisions. The banking industry acutely felt need for strong Credit Information Bureau. 6. The first such bureau was Credit Information Bureau (India) Ltd. It was followed by three more companies. One of the newest and fastest growing Credit Bureau is High Mark, which was founded in 2007 and was licensed by the Reserve Bank of India in 2010. Our bank is one of the members of this Credit Information Bureau. It provides its customers (in

banking, financial services, insurance, telecom, and other sectors) the country's absolute best in bureau services, risk management, and analytic solutions. Two other bureaus are M/s Experian Credit Information Company of India Private Ltd. & Equifax Credit Information Services Pvt. Ltd. 7. In terms of sub-sections (1) and (2) of Section 17 of the Credit Information Companies (Regulation) Act, 2005, a credit information company may require its members to furnish credit information as it may deem necessary in accordance with the provisions of the Act and every such credit institution has to provide the required information to that credit information company. Further, in terms of Regulation 10(a) (ii) of the Credit Information Companies Regulations, 2006, every credit institution shall: (a) keep the credit information maintained by it, updated regularly on a monthly basis or at such shorter intervals as may be mutually agreed upon between the credit institution and the credit information company; and (b) take all such steps which may be necessary to ensure that the credit information furnished by it, is up-to-date, accurate and complete. 8. High Mark has latest technology required for Indian Credit data and also has adopted Global best practices. High Mark provides cost-effective, flexible and End-to-End bureau solutions to support any banks decision management requirements, based on the proper information about the applicant. 9. Mark reports Consumer Credit Information in simple, yet easy to read, comprehensive and accurate manner. Such reports capture all relevant information related to the consumer credit history. High Mark offers 2 types of Consumer Credit Information Reports to its Members; The Basic Credit Report (BASETM Report) and The Advanced Credit Evaluation Report (ACETM Report). High Mark offers smart and innovative solutions to Enterprises across the Industry spectrum. High Mark offerings is best suits banks and financial institutions operating in Retail consumer finance, MSME, Microfinance, Rural & Cooperative lending sectors; and Organizations in Telecommunication and Insurance sectors. Furthermore, High Mark's technology innovations uniquely enable it to create India's first Bureau for the Priority Sector and also to vastly improve data quality through its data cleansing, KYC compliance and monitoring capabilities.

10. These credit reports are readily available directly on the screen. High Mark allocates the member id and password. The staff of the member establishment can log in and feed in the particulars of the person whose financial antecedence and present position the bank wants to know. This information becomes available to the member immediately. It should be downloaded and be kept on record. Not only it becomes very helpful in taking right credit decision, it is also a positive point in the audit ratings of the bank. In case of High Mark, the charges for downloading the credit reports are inverse of the usage, i.e. if the banks usage is higher then the charges are lower. 11. It is obligatory on the member bank to furnish every month the latest data about all the borrowers. High Mark has devised a simpler reporting format for the cooperative banks for this purpose.