I just read an article from the latest issue of INSIGHT (a periodical
published by the Consumer Education Research Centre (CERC) Ahmedabad)
about how CIBIL (Credit Information Bureau (India) Limited) tracks
your credit worthiness and how banks are flouting the rules laid down
by RBI such that your credit is stake.

The scanned copy of the article is attached herewith for your reading. (1.45 MB)

Let me point out the main issues:

1. The data of all 'liability product customers' - those who 'buy'
(procure) credit cards, home loans, bank accounts, personal loans,
other loans, etc are submitted to the CIBIL if there is any
delinquency (cheque bounce, default, etc)
2. This data is correlated with other data about yourself -such as
PAN, Date of Birth, Mobile/Residence/Office phone nos, etc. so that
your data is identified as unique/irrefutable.
3. This data is acquired from CIBIL (and now new credit info companies
are coming) by companies in the financial sector - banks, NBFCs,
insurance companies, etc when you approach them to buy any new product
4. If the CIBIL (or others) report is negative your application would
be rejected or you would be offered the product at special conditions
- higher rates, shorter terms, etc
5. Whenever a financial service provider intimates CIBIL or others
about you, as per RBI rules, they should inform you and give you a
copy of the report.
6. However this is not done and they do this by changing the agreement
with you. (Example given in the article)
7. Even when there is any dispute and the dispute is settled /
negotiated the company may not give the updated data to CIBIL thereby
severely compromising your credit worthiness.

If you are a regular user of credit cards and have other loan
products, and are interested in knowing your credit report from CIBIL,
kindly use the information given in the forwarded e-mail.

Hope this information will be useful to you.