{"id":23734,"date":"2019-08-30T19:10:22","date_gmt":"2019-08-30T13:40:22","guid":{"rendered":"https:\/\/enterslice.com\/learning\/?p=23734"},"modified":"2020-08-26T12:56:29","modified_gmt":"2020-08-26T07:26:29","slug":"nbfcs-to-submit-financial-information-with-nesl","status":"publish","type":"post","link":"https:\/\/enterslice.com\/learning\/nbfcs-to-submit-financial-information-with-nesl\/","title":{"rendered":"NBFC\u2019s To Submit Financial Information with NeSL – RBI\u2019s First IU under IBC"},"content":{"rendered":"

RBI has issued a circular dated 19th<\/sup> December 2017, directing NBFC<\/a><\/strong><\/a>’s<\/strong> to furnish its financial and assets related information to the Information Utility. <\/p>\n\n\nIUC19122017063A65D368CD4F6DAEC111841091C932
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The circular\nmentioned above regulated by RBI has asked banks and other financial institutes\nlike NBFC’s to share information<\/strong>\nabout their assets of creditors with Information utilities registered under\nIBC, 2016. Such directives of the Reserve Bank of India will help Information\nutilities to store financial information.<\/p>\n\n\n\n

Further, this stored information can be used to establish defaults and verify the claims expeditiously to complete transactions under the IBC in a time-bound manner. Currently National E-Governance Service Limited (NeSL<\/strong>) is the only Information utility registered in India. The Main role of NeSL is to holding the information regarding any debt\/ claim, as submitted by the financial or operational creditor and verified and authenticated by the parties to the debt. <\/p>\n\n\n\n

What is Information Utility?<\/h3>\n\n\n\n

An information utility is a professional organization, registered under section 210 of IBC, 2016. The role of this organization is to collect financial information and get the authenticity of the said information by other parties connected to the debt and store the same. Further, to provide the collected information to the resolution professional, creditors, and stakeholders during the process of insolvency<\/strong><\/a>. Subsequently, the stakeholder can avail of this information at the time of insolvency<\/strong> and can make their decision accordingly. The main significance of Information Utility expected that with its process the information gathered would reduce the amount of NPA’s in the banking sector.<\/p>\n\n\n\n

What are the offerings of Information\nUtility?<\/h3>\n\n\n\n

Section 3(9) of IBC, 2016 defines the “core services’’ as services rendered by IU;<\/em><\/strong><\/p>\n\n\n\n