India's CIBIL: A misused system

I am writing this from my own experience.

CIBIL database was created to collect and store an individual's credit history. However there is NO regulation in place which could deem banks to furnish positive details about a client.
A few days back, I got a call from a collection agent and he mentioned that I used a credit card way back in 2006 and I am supposed to pay nearly 10 times the transaction amount now. The card was actually misused and I never came to know about the same because I relocated to Ahmedabad to do my MBA.

The bank had given my name to CIBIL which I confirmed from CIBIL however I have been paying two loan EMI regularly since June 2008; and this information was not with CIBIL.

OK, now I have settled (I had to) with the bank for my credit card. I checked with the banks from which I availed loans (and have been paying EMIs regularly) asking them the reason behind not giving my positive credit history to CIBIL. The answer was, "If you are not a defaulter then why should we take extra pains to give the information to CIBIL".

Now this means that in case you want to apply for a loan of 1 million, it can be rejected on the basis of a complaint by a bank for 1000 bucks .... amazing!!! They do not maintain any credit history as such but they maintain negative (apparently) credit history.