The Reserve Bank said on Thursday that credit information companies (CICs) will have to compensate clients for delays in updating or correcting their credit information by giving them a daily payment of Rs 100.
The ‘Framework for reimbursement to consumers for delayed updation/rectification of credit information’ will be implemented in six months by credit information companies (CICs) and credit institutions (CIs) provided the appropriate systems and procedures are put in place.
The Reserve Bank instructed CICs and CIs to apply the compensation structure for delayed credit information updates and corrections in a circular.
“Complainants shall be entitled to a compensation of Rs 100 per calendar day in case their complaint is not resolved within thirty (30) calendar days from the date of the initial filing of the complaint by the complainant with a CI/ CIC,” it stated.
The circular further said that if CIs or CICs wrongfully refuse to provide compensation, the complainant may file a complaint with the RBI Ombudsman.
The RBI has made the decision to establish a comprehensive framework for bolstering and enhancing the effectiveness of the grievance redress mechanism and customer service offered by CIs and CICs in response to the rise in customer complaints about credit information reporting and the operation of CICs.
Among the leading providers of credit information in India are CRIF Highmark, Equifax, Experian, and Credit Information Bureau (India) Limited (CIBIL).