RBI has constituted a Central Repository of Information on Large Credits (CRILC) to collect, store, and publish data on all borrowers’ credit exposures. Banks/Financial Institutions are expected to report findings to CRILC. Banks will have to provide credit information to CRILC about their borrowers with an aggregate fund-based and non-fund based exposure of and over Rs.5 Crores (Rs.50 million). Banks should also report the SMA status of their borrowers to the Central Repository of Information on Large Credits. As a way to impart knowledge about credit discipline, mainly regarding reduction in NPA level in banks, banks have been suggested to refer the information provided in CRILC instead of limiting the due carefulness to looking for NOC (No Objection Certificate) from the bank with whom the customer is availing credit facilities as per the presented declaration. The CRILC was built in 2014 precisely to help financial institutions and banks to assess their non-performing assets (NPAs) and also share this information with other institutions. The idea behind the creation of the CRILC was for financial institutions to notify the status of their stressed borrowers and submit the information to a central database of the Reserve Bank of India. There are also guidelines to separate borrowers as SMAs (Special Mention Accounts) of different levels to assess their probability of going delinquent. In January 2016, RBI imposed a fine of Rs.1 crore on the State Bank of Travancore (SBT) for violating some guidelines regarding the Central Repository of Information on Large Credits.
CRILC, RBI, etc. are important concepts in Economics for the UPSC civil services exam. These topics are important from the prelims as well as the mains exam point of view.