Section 36 of The Credit Information Companies (Regulation) Act, 2005.
- (1)The Central Government may, after consultation with the Reserve Bank, by notification in the Official Gazette, make rules to carry out the provisions of this Act.
- (2)In particular, and without prejudice to the generality of the foregoing powers, such rules may provide for all or any of the following matters, namely:--
- (a)the authority or tribunal which may be designated under sub-section (1) of section 7;
- (b)the steps to be taken by every credit information company or credit institution and specified user for ensuring accuracy, completeness of data and protection of data from any loss or unauthorised access or use or disclosure under section 19;
- (c)the form in which a declaration of fidelity and secrecy shall be made under sub-section (2) of section 29;
- (d)any other matter which is required to be, or may be, prescribed.
- (3)Every rule made by the Central Government under this Act shall be laid, as soon as may be after it is made, before each House of Parliament, while it is in session, for a total period of thirty days which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid, both Houses agree in making any modification in the rule or both Houses agree that the rule should not be made, the rule shall thereafter have effect only in such modified form or be of no effect, as the case may be; so, however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that rule.
Summary
- The Central Government creates the detailed rules for this Act, but it must consult the Reserve Bank before doing so.
- These rules can specify things like which tribunal hears appeals, how data must be secured, and the exact form for secrecy declarations.
- The rules must be published in the Official Gazette.
- Parliament has the power to modify the rule or decide it should not take effect at all.
Practical examples
FAQ
1. Can the Central Government make these rules completely on its own?
No, the Government must make the rules after consultation with the Reserve Bank.
2. What kind of specific details can these rules cover?
They can designate the appeal authority, outline steps for data protection, and provide the form for secrecy declarations.
3. If Parliament cancels a rule later, what happens to things people did while the rule was active?
The annulment does not hurt the validity of anything previously done under that rule.
Test yourself
Q1.Under Section 36 of The Credit Information Companies (Regulation) Act, 2005., when the Central Government makes rules regarding the steps companies must take to ensure data accuracy under Section 19, whom must they consult first?
Q2.Under Section 36 of The Credit Information Companies (Regulation) Act, 2005., what specific document mentioned in Section 29 must the new rules provide a form for?
Q3.Under Section 36 of The Credit Information Companies (Regulation) Act, 2005., how long must a new rule regarding an appeal authority under Section 7 be laid before Parliament?
Q4.Under Section 36 of The Credit Information Companies (Regulation) Act, 2005., if Parliament decides to annul a rule after it has been laid before them, what happens to actions already taken under that rule?