Frequently Asked Questions (FAQs) on Information Utilities (IUs)


  • This document is prepared for education purpose only to the Users.
  • These FAQs are not the interpretation law; but provide only a simplistic explanation of terms / concepts related to Information Utilities under IBC, 2016.
  • For full particulars of laws governing the Information Utilities System, please refer to the relevant Acts, Regulations, Guidelines and Circulars appearing under the provisions of Insolvency & Bankruptcy Code, 2016.

What is an Information Utility?

Ans. An Information Utility is a professional organization (which is registered with IBBI under Section 210 of IBC, 2016 as per the eligibility criteria prescribed) that will collect financial information, get the same authenticated by other parties connected to the debt & store the same and provide access to the Resolution Professionals, Creditors and other stake holders in the Insolvency Resolution Process, so that all stake holders can make decisions based on the same information.

The New Law IBC,2016 consolidates the existing framework and creates a new institutional structure, by setting up of Information Utility Companies, which will store all the credit information of Corporates/entities/persons;  The Certificate & data furnished by IUs are accepted by NCLT/DRTs as legal evidence.

This IU set-up is expected to contribute significantly for reduction of NPAs in banking sector, as the code aims to resolve the insolvencies in a time bound manner.

What is the role of Information Utilities?

Ans. The information utilities shall act as a regulated information agency which shall accept, electronically record, get authentication, maintain and provide access to financial information to the persons as may be specified in the Act, e.g., creditors, Adjudicating Authority and other persons having interest in the information.

What are the services provided by Information Utilities?

Ans. IUs provide the core services and other services under IU Regulations in accordance with IBC Code. (Section 3(9). “Core services” means services rendered by an information utility for-

  1. a) Accept electronic submission of financial information.
  2. b) Safe and accurate recording of financial information.
  3. c) Authenticating and verifying the financial information submitted by a person.
  4. d) Providing access to information stored with the information utility to persons as may be specified.

What are the obligations and functions of Information Utility?

Ans. The obligations & functions are as under:

  1. Create and store information in a universally acceptable format
  2. Accept electronic submissions of financial information from persons who are under obligation to submit the financial information under sub section (1) of Section 215 of IBC, 2016, in such form and manner as may be specified by Regulations
  3. Accept in specified form and manner, electronic submission of financial information from persons who intend to submit such information
  4. Meet such minimum service quality standards as may be specified by the Regulations
  5. Get the information received from various persons authenticated by all concerned parties before storing such information
  6. Provide access to the financial information stored by it to any person who intends to access such information in such manner as may be specified by Regulations
  7. Publish such statistical information as may be specified by Regulations
  8. Have inter-operability with other information utilities

For a Firm to act as Information Utility, whether any registration is required?

Ans. Yes, an Information Utility shall be registered with Insolvency and Bankruptcy Board of India (IBBI), as specified in IBC, 2016, to carry on business as an Information Utility and has to obtain a Certificate of Registration from IBBI.  The details of eligibility criteria etc., are furnished in Regulation 3 of Insolvency and Bankruptcy Board of India (Information Utilities) Regulations 2017.  They need to be complied with while applying for registration.

What are the grounds on which registration of an Information Utility can be cancelled?

Ans.  As per Section 210 of IBC, 2016, the IBBI may order for suspension or cancellation of Certificate of Registration granted to an Information Utility, on certain grounds mentioned therein.

Does the Information Utility require constituting a Governing Board?

Ans. Yes, the IBBI Board requires every Information Utility to set up a Governing Board for ensuring that the Information Utility takes into account the objectives sought to be achieved by the Code.

What is the procedure for submission of financial information to Information Utility?

Ans. Any person may submit financial information to the information utility or access the information from the information utility on payment of requisite fee in such form and manner as may be specified by IU Regulations.

Before submitting the financial information, the person/entity has to enroll itself as a “User”with the Information Utility by declaring its identity and producing the identity documents like-  Aadhaar, PAN, CIN Number etc.  NeSL would be verifying the identity and only thereafter, User Registration will be done and User Id informed, by e-mail.  For Institutions like-  Banks/FIs, a Super User would be created with a facility to create sub-users.  Details would be communicated to individual banks/FIs.

For further details on User Registration and Submission of Information, please refer to “Detailed guidelines on User Registration Form” published in NeSL’s Website.

As per Section 3 (23), the word “Person” includes-  an individual, a Hindu Undivided Family, a Company, a Trust, a Partnership, a Limited Liability Partnership; and any other entity established under a statute and includes a person resident outside India.

What is financial information?

Ans.  Financial information in relation to a person, means, one or more of the following categories of information, namely

  1. Records of the debt of the person;
  2. Records of liabilities when the person is solvent;
  3. Records of assets of person over which security interest has been created;
  4. Records, if any, of instances of default by the person against any debt;
  5. Records of the balance sheet and cash flow statements of the person; and
  6. Such other information as may be specified.

Who can submit the information to an IU?

Ans. Any party connected to a Debt viz., Creditor (Either Financial Creditor or Operational Creditor), Debtor (or his authorized representative like Auditor), Co-Applicant, Co-borrower, Guarantor, can furnish the information to an IU.

Whether it is obligatory for a Financial Creditor to submit the financial information on a Debt to an InformationUtility?

Ans. Yes.  Section 215(2) stipulates that Financial Creditor shall furnish the information on a debt to an Information Utility.  Similarly, the Operational Creditor is also required to furnish the information on an operational Debt to an IU.

What is the format for submitting the financial information to an IU?

Ans. It can be submitted in Form C – Data Input File Format prescribed &published by NeSL inits Web-site.

Whether the data is to be submitted to NeSL (IU) for all accounts(Healthy accounts or sick / NPA accounts)?

Ans. All debt information irrespective of its health can be submitted to the IU.  Accounts in Standard Assets category and before getting delinquent have greater chances of getting authenticated by the borrower, which the Creditor can fall back on in case of default.

What is the frequency of submission of information for up-dation with an Information Utility?

Ans.   Ideally, the up-dation of information by financial creditor is preferred on weekly basis.  However periodicity of up-dation is left to the choice of individual banks, for the present.

What is default for reporting to an Information Utility?

Ans.  Section 3(13) defines the default as non-payment of debt when whole or any part or instalment of the amount of debt has become due and payable and not repaid by the debtor.

Other than the Creditor, Debtor & Guarantor, whether any other person can submit the information on a debt to the information Utility?

Ans. In cases where Insolvency Resolution Process has commenced, the Resolution Professional can submit the information on the proceedings of meetings, records etc., in a Debt Account to the Information Utility, for storing.  An IU is required to extend such a service.

Whether a Registered User will receive any acknowledgment on submission of information on a Debt?

Ans. On receipt of information submitted by a Registered User, an Information Utility shall assign a Unique Identifier to the information including records of debt, acknowledge the User and notify the User of Unique identifier to the Information (Debt), the terms and conditions of authentication/verification and the manner in which the information can be accessed by other parties.

Whether the Registered User will be allowed to view the information stored with an IU?

Ans. An Information Utility in all cases shall enable the User (Registered as User) to view the data on which the information was last updated, the status of authentication/verification while providing access to information.

Whether Information Utility would emerge as a Competitive Industry in future?

Yes.  This would help in qualitative service at cheaper cost/s.

Whether a User registered with one Information Utility can submit the updates to another Information Utility?

Ans. Yes, a Registered User may submit the information to any Information Utility, once more than one Information Utility come into operation.

Whether the User will get any periodical statement from the Information Utility?

Ans. An Information Utility shall provide every Registered User an annual statement of all information pertaining to that User, free of charge.

Can a person modify or correct the information submitted to Information Utility?

Ans.  Yes, a person may modify or update or rectify an error, in the financial information submitted to an Information Utility by stating reasons in the manner as may be prescribed in the Code/Regulations.

What are the duties of Registered User?

Ans. A User shall expeditiously update the information submitted by it to an Information Utility.  Further, a User shall expeditiously correct the information as soon as it finds it erroneous, stating reasons, if any.

What is the process of authentication?

Ans. As per the provisions of IBC, 2016 & IU Regulations, the financial information furnished by one of the parties connected to a debt needs to be verified & authenticated by all other parties connected to the debt by affixing their digital signature or Aadhar based e-signature.  NeSL would be storing the authenticated information with it, for providing access to the persons specified in the Act, during the Insolvency Resolution Process.

Whether all parties the Debt i.e., Borrower, Co-obligant& Guarantor, need to authenticate the information that is submitted to NeSL(IU)?

Ans. Yes.  All the parties connected to Debt need to electronically authenticate the information with an IU, in order to store the information.

During the process of authentication, in cases where the parties to the Debt find incorrect information and prefers to record his remarks while authentication, can he do it?

Ans. Yes, the party authenticating the information is provided with an option to review and affix his remarks item-wise for the data, while authenticating the information furnished by an Information Utility.  Such disputed details would be referred back to financial creditor/banks for resolution.

What happens if the Borrower (Corporate Debtor) does not authenticate the Debt information or Default in an account?

Ans. Such cases pending for authentication beyond 7 days would be referred back to Financial Creditor/Banks for resolution.

What is the procedure for retrieval of information by a Debtor / Insolvency Resolution Professional?

Ans.   For accessing information from an Information Utility, a person has to pay such fees and access/retrieve such information in such form and manner as has been specified in the Regulations.

The applicant is required to submit the prescribed request for retrieval of information. The format is published in NeSL’s Web-site.  On receiving the request, NeSL would verify his/her identity, his/her relationship to the debt and on being satisfied, would enable access to the connected debt information.

Whether IU would furnish the information stored with it to others?

Ans. NeSL, as IU would enable access to the information stored with it, only to parties connected to Debt, Insolvency Resolution Professionals, Liquidators,  Adjudicating Authority and IBBI as per Regulation 23.

How long an Information Utility shall preserve the information submitted to it?

Ans. The NeSL would preserve the information stored with it for a period of 8 years from the date closure of debt or from the date of last update in a debt a/c.

Whether the information stored with an IU is safe, secure and verifiable?

Ans.  Yes.  All necessary care is exercised by an IU, following the standard practices.

What is the utility of information stored with an Information Utility?

Ans.  The authenticated information stored with an IU is treated as a legal evidence in the Insolvency Resolution Process.  The authenticated information cannot be repudiated.  It helps in establishing the facts of borrowing and facts of default.   Therefore, this enables saving of time in Resolution Process before the Adjudicating Authority.

The purpose of this is to remove information asymmetry and dependency on the debtor’s management for critical information that is needed to swiftly resolve insolvency.

Whether the Information Utility would be levying any fee for extending its services?

Ans.  Yes, the NeSL, as Information Utility, would be collecting the fee for extending its various services like-  User Registration, Submission of information, Authentication, Retrieval, Upload of documents / Documents holding fee, etc.  Its fee structure for various services would be furnished in its Website “”

What is the procedure to lodging a grievance with an Information Utility?

Ans. Any person not satisfied with the service offered by NeSL as an Information Utility may lodge his/her grievance in the Web-based Grievance Redressal Mechanism enabled in its website.  NeSL would resolve all such grievances in a time bound manner, within 7 working days and inform the Complainant by e mail.

In case the maker of the representation is not satisfied with the reply, he can escalate the matter to Grievances Redressal Committee of NeSL, which would be examined by the said Committee and resolution would be ensured in 10 working days.

What is the procedure for lodging a Complaint against an Information Utility?

Ans.  Any person aggrieved by the functioning of an Information Utility may file a complaint with IBBI.