RBI: Credit bureaus to resolve complaints within 30 days, or face penalty of Rs 100 per day

RBI: The Reserve Bank of India has told lenders, financial institutions and credit bureaus that they have to resolve customer complaints within 30 days. If this is not done then a fine of 100 rupees per day will have to be paid. RBI has directed Credit Institutions (CI) and Credit Information Company (CIC) to submit compensation framework for updating and correction of credit information. RBI has asked to prepare it in 6 months.

Even if the CI submits the updated credit information to the CIC within 21 days, a penalty of Rs 100 per day will be payable if the complaint is not resolved within 30 days. CIC maintains credit information of borrowers, corporates and small businesses and can be accessed by banks at the time of granting loans or when required.

RBI acted on customer complaints

The Reserve Bank of India received several complaints from CIC regarding non-updating the status of borrowers. After this RBI has asked to prepare the compensation structure. Consumers complained that even after rectification of default status, CIC did not update information on time, due to which many consumers could not get loans or credit cards. RBI has said that CIC should provide access to free credit report including credit score once a year. Also, credit related information should also be given through email and message, so that credit information can be easily accessed.

How much fine on four CIC

In June, the RBI imposed a penalty of Rs 1.01 crore on four CICs for providing incorrect, incomplete data and not updating credit information within 30 days of receiving complaints from lenders. On TransUnion CIBIL Limited Rs. 26 lakhs, Experian Credit Information Company of India Pvt Ltd and Equifax Credit Information Services Pvt Ltd Rs. A fine of 24.75 lakhs was imposed. On the other hand, RBI also imposed a penalty of Rs 25.75 lakh on CRIF High Mark Credit Information Services Private Limited.