If you are appointed as a Compliance Officer of The Global Bank Ltd., how you will advise to Mr. Rohit Aggarwal, Branch Manager to remove the Knowledge Gaps on Legal and Regulatory Compliance in Banks with regard to proc

A good credit score of a person / company is a sine qua non for good credit health and is crucial for a person to avail financial assistance. So maintaining a good credit score is an indispensable activity. A Credit Information Company (CIC) collects and maintains records of an individual's payments and dues pertaining to loans and credit cards. These records are submitted by the respective banks and other credit institutions to the CIC. This information is then used to create credit information report which is provided to credit institutions in order to access the creditworthiness and capacity of a borrower to repay his loan and advances and discharge his other obligations in respect of credit facility availed or to be availed by him. Inaccurate record of information of a person maintained by credit institutions and CIC may have dire consequences and so it is imperative that accurate reporting be done. The Credit Information Companies (Regulations) Act, 2005 was therefore enacted to regulate credit information companies and to facilitate efficient distribution of credit rating of an individual. CIBIL score is a numeric summary of one's credit history and it helps one get their loan applications evaluated and approved. Banks and other financial institutions rely on CIBIL Scores to evaluate the potential risk posed by lending money to consumers and to mitigate losses. CIBIL score plays a very important role in India's financial system and helps consumers secure credit quicker and also help loan providers manage their business efficiently. CIBIL score acts as the first impression for the lender, the higher the score, the better chances of the loan/credit card being approved. A good CIBIL score get the best interest rates and terms. Higher the credit score, better the interest rate.