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Consider the following statements:
1. Credit bureaus are organizations that collect, analyze, and maintain credit data on borrowers, businesses, and organizations. 
2. They are licensed by the Securities and Exchange Board of India.
3. Credit reports can only be provided to borrowers and government agencies.
How many statements given above is/are correct?
  • a)
    Only one
  • b)
    Only two
  • c)
    All three
  • d)
    None
Correct answer is option 'A'. Can you explain this answer?
Most Upvoted Answer
Consider the following statements:1. Credit bureaus are organizations ...


Explanation:

Credit Bureaus:
- The first statement is correct. Credit bureaus are organizations that collect, analyze, and maintain credit data on borrowers, businesses, and organizations.

Licensing:
- The second statement is incorrect. Credit bureaus are not licensed by the Securities and Exchange Board of India. They are regulated by the Reserve Bank of India and governed by the Credit Information Companies (Regulation) Act, 2005.

Credit Report Access:
- The third statement is partially correct. Credit reports can be provided to borrowers, government agencies, as well as other authorized entities such as lenders, financial institutions, and insurance companies.

Therefore, the correct answer is option 'A' - Only one statement is correct.
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Community Answer
Consider the following statements:1. Credit bureaus are organizations ...
Statement 1 is correct: Credit Information Companies, also called credit bureaus, are organizations that collect, analyze, and maintain credit data on borrowers, businesses, and organizations. CIBIL is the oldest and most well-known credit information company in India. The top four credit information companies in India are:
  • Credit Information Bureau (India) Limited (CIBIL)
  • Equifax
  • Experian
  • CRIF Highmark Statement 2 and 3 are not correct: They are licensed by the Reserve Bank of India. Credit reports can only be provided to the following people or authorities upon request:
  • Borrower’s employer
  • Borrower’s landlords
  • Utility service providers
  • Government of India
  • Lenders, banks, financial institutions
  • Any third party (only after the written request from the borrower)
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Consider the following statements:1. Credit bureaus are organizations that collect, analyze, and maintain credit data on borrowers,businesses, and organizations.2. They are licensed by the Securities and Exchange Board of India.3. Credit reports can only be provided to borrowers and government agencies.How many statements given above is/are correct?a)Only oneb)Only twoc)All threed)NoneCorrect answer is option 'A'. Can you explain this answer?
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