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Credit Bureaus Must Resolve Customer Complaint within 30 Days Else Pay Rs100 Fine per Day: RBI
Moneylife Digital Team 26 October 2023
Investor Interest
Introducing a framework of compensation mechanism for delayed updation or rectification of credit information by the credit institutions (CIs) and credit information companies (CICs), Reserve Bank of India (RBI) has asked them to resolve complaints filed by customers within 30 calendar days or pay a fine of Rs100 per day after that.
 
RBI says, "A CI shall pay compensation to the complainant if the CI has failed to send updated credit information to the CICs by making an appropriate correction or addition or otherwise within 21 calendar days of being informed by the complainant or a CIC. A CIC shall pay compensation to the complainant if the CIC has failed to resolve the complaint within 30 calendar days of being informed by the complainant or a CI, despite the CI having furnished the updated credit information to the CIC within 21 calendar days of being informed by the complainant or the CIC."
 
"The complainant shall be advised by the CI or CIC of the action taken on the complaint in all cases, including the cases where the complaint has been rejected. In cases of rejection, the reasons for rejection shall also be provided by CI and CIC. Compensation to be provided by the CICs or CIs to the complainant (for delayed resolution beyond 30 calendar days of filing the complaint) shall be apportioned among the CIs or CICs concerned proportionately," it added.
 
Where the grievance or complaint involves inaccurate credit information provided by more than one CI, RBI says, the complaint will be registered by the complainant with the concerned CIC, which will coordinate with all the CIs concerned and furnish the complainant with a comprehensive resolution of the grievance.
 
Where the complaint has been received and registered by a CI or CIC, and there has been a delay in the resolution of the complaint, the CI or CIC, as the case is, will inform the concerned CIs or CICs and the complainant after the final resolution, regarding the total delay in calendar days and the amount of compensation to be paid by the CIs and/ or the CIC, it added.
 
Directing CICs and CIs to put in place necessary systems and processes to implement the compensation framework, RBI says it will come into effect in the next six months.
 
Earlier in June this year, RBI imposed a total penalty of Rs1.01 crore on all four credit information companies (CICs) for inaccurate and incomplete data and not updating credit information within 30 days after receiving complaints from borrowers.
 
TransUnion CIBIL Ltd is asked to pay a penalty of Rs26 lakh, while Experian Credit Information Company of India Pvt Ltd (Experian India) and Equifax Credit Information Services Pvt Ltd have to pay a fine of Rs24.75 lakh each. RBI imposed a penalty of Rs25.75 lakh on CRIF High Mark Credit Information Services Pvt Ltd.
 
"On receipt of complaints from some borrowers, these companies had neither updated the credit information relating to them nor informed them regarding the steps taken by it for correction of discrepancies and also the reasons for its inability to comply with the timeframe for providing correct information, within 30 days of receipt of such complaints," RBI says. (Read: RBI Imposes Rs1.01 Crore Penalty on TransUnion CIBIL, Experian, Equifax & CRIF High Mark for Inaccurate Data of Borrowers)
 
In March 2022, the Union government told the Rajya Sabha that CICs or credit bureaus are mandated to share corrected particulars with the specified user or individual within 30 days. 
 
In a written reply, minister of state for finance Dr Bhagwat Karad says, "As per the rules framed under the CIC (Regulation) Act, if a CIC discovers of its own or is informed about any inaccuracy, error or discrepancy in respect of the credit information maintained by it, the CIC is required to send the intimation of the same within seven days to the specified user or individual; to take immediate steps to correct the same and to forward the corrected particulars to the specified user or individual within 30 days from the date when the same was discovered by or reported to the CIC." (Read: Credit Bureaus Mandated To Rectify Inaccuracy, Error or Discrepancy in 30 Days: Govt)
Comments
SILVERMCMAHON
1 year ago
I am of the opinion that this fine of Rs. 100 per day should also be made mandatory in case of a complaint against any bank to the RBI Ombudsman and this fine should start from the end of 30 days from which written complaint was submitted to the bank for the 1st time irrespective of the date of complaint to the RBI Ombudsman and its resolution thereafter.

I urge Moneylife to please take up this matter and forward it to the concerned authorities so that they can take some appropriate decision on it.
Reply
raj
1 year ago
CIBIL has a peculiar data migration/mapping problem possibly due to manual mapping steps during correction while data migration. Their consumer/commercial teams many a time assume that the wrongly inserted data (CIBIL refers to the record as TUF, maybe for TransUnion Format?) as sacrosanct and reject account ownership disputes in such cases. In a recent case even though the bank's head office complained to CIBIL that the erroneous data belongs to another customer of theirs and not the customer in whose CIBIL report the wrong loan account appears, their Consumer technical team is trying to justify that it is as per the TUF even though that TUF itself is associated with a customer that does not even belong to their bank. CIBIL acknowledged to the customer that he has written complaints to them since June-2020 and "they are still investigating the problem." This is a fit case to complain to RBI. His loan application has been rejected by lending banks due to this wrong loan account and associated address, email id, mobile number not belonging to the customer in whose CIBIL records it is reported.
Reply
raj
Replied to raj comment 1 year ago
Note: Typo “June-2023” instead of “June-2020”
Reply
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