Section 18 in The Credit Information Companies Rules, 2006
18. Steps for security and safeguards to be taken by credit institutions
- Every credit institution, in existence in India on the commencement of these rules, before the expiry of three months from such commencement, and every other credit institution before the expiry of three months of commencing their business in India, shall formulate appropriate policy and procedure, duly approved by its Board of Directors, specifying therein the steps and security safeguards, to be adopted in their operations relating to-(a)collection, processing and collating of data, information and credit information by them relating to their borrower or client;(b)steps to be taken for ensuring security and protection of data, information, and credit information maintained by them;(c)appropriate and necessary steps for maintaining an accurate, complete and updated data, information and credit information, in respect of their borrower or client, and to ensure the accuracy and completeness thereof while furnishing the same to a credit information company or making disclosure thereof to anyone else in accordance with the provisions of the Act; and(d)transmitting data, information and credit information through secure medium.
