RBI news: The Reserve Bank of India (RBI) on Thursday directed credit information companies (CICs) and credit institutions (CIs) to provide monetary compensation to complainants if delays in updating or correcting credit information are not resolved within 30 days.
Updated Date: Oct 27, 2023 | 07:09 IST
RBI News: Reserve Bank of India directs CICs to pay Rs 100 per day to complainants if their issues are not resolved even after a month (Image: Twitter/Shutterstock)
RBI news: The Reserve Bank of India (RBI) on Thursday directed credit information companies (CICs) and credit institutions (CIs) to provide monetary compensation to complainants if delays in updating or correcting credit information are not resolved within 30 days. The Central Bank has directed these organizations to pay Rs 100 per day to the complainants if their complaints are not resolved within 30 calendar days.
CIC is an independent third-party agency that collects financial data about individuals on loans, credit cards, and more and shares it with its members.
Compensation of Rs 100 in these cases
“If their grievance is not resolved within thirty (30) calendar days from the date of initial application by the complainant to CI/CIC, the complainants shall be entitled to compensation of Rs 100 per calendar day,” the RBI notification read.
If the CIC receives an individual’s updated or corrected credit information but does not update it within one month, compensation must be paid to the complainant. However, for CIs, if they fail to submit updated credit information to CICs within twenty-one (21) calendar days after being notified by the complainant or CIC, they must compensate the complainant.
Press for more information flow via SMS and email
In a separate notification, the RBI said CICs will send alerts to customers via SMS or email when their Credit Information Reports (CIR) are accessed by Designated Users (SUs). Alerts will be sent by CICs only when the CIR query is reflected in the customer’s CIR.
RBI advised CIs to organize special awareness campaigns to sensitize their customers about the benefits of submitting their mobile numbers/email IDs for this purpose.
Credit Information Bureau (India) Limited (CIBIL), Equifax, Experian and CRIF Highmark are some of India’s major credit information companies, according to Economic Times.