What Is The Full Form Of CIS In Banking?

CIS full form in banking is Credit Information Sharing. Licensed Credit Reference Bureaus (CRBs) receive information about borrowers from credit providers like banks and licensed microfinance banks through a mechanism called Credit Information Sharing (CIS), which allows the data to be shared with other credit providers.

Among other names for CIS are Credit Referencing, Credit Reporting, and Credit Scoring. Lenders use the Credit Reference Bureau’s consolidated databases to borrow and pool this information electronically.

The purpose of CIS is to assist in determining whether borrowers and lenders lack credit information. Information asymmetry is the term used to describe this lack of information balance. The present state of affairs has negative ramifications, including inappropriate lending terms and products and the exclusion of particular borrower groups from the credit market.

What Else Should You Know About CIS?

There are many advantages to CIS for all parties concerned. CIS assists clients in setting themselves apart from the chronic defaulter. It assists in compiling a customer’s verified positive credit history from multiple lenders into a single, trustworthy database. A consumer can use this advantage to negotiate favorable loan conditions based on their solid repayment history. When credit providers view credit reports created by the CRBs online, loan processing gets simpler. There are no search fees associated with the borrowing procedure. Consumers can switch credit providers, benefiting from the competition to get better credit conditions and credit at a reduced cost.