The Reserve Bank of India (RBI) has recently implemented a stringent policy to ensure timely resolution of customer complaints by credit institutions (CIs) and credit information companies (CICs). Here’s a detailed overview of this policy:
- Complaint Resolution Timeline and Fine Imposition: The RBI has mandated that CIs and CICs must resolve complaints filed by customers within 30 calendar days. If they fail to do so, they are required to pay a fine of ₹100 per day for every day of delay beyond this period.
- Compensation Framework: The RBI has outlined a compensation mechanism for delays in updating or rectifying credit information. If a CI fails to send updated credit information to the CICs within 21 calendar days of being notified by a complainant or a CIC, it must pay compensation to the complainant. Similarly, a CIC must compensate the complainant if it fails to resolve the complaint within 30 calendar days of notification, despite receiving the updated information from the CI within the stipulated 21 days.
- Notification and Apportionment of Compensation: The RBI stipulates that the complainant should be informed by the CI or CIC about the actions taken on their complaint, including in cases where the complaint is rejected. In the event of delayed resolution beyond 30 calendar days, the compensation will be apportioned proportionately among the concerned CIs or CICs.
- Handling Complaints Involving Multiple CIs: In cases where the complaint involves inaccurate credit information from multiple CIs, the complainant must register the complaint with the concerned CIC. This CIC is then responsible for coordinating with all involved CIs to provide a comprehensive resolution to the complainant. Post-resolution, the CI or CIC will inform the relevant parties of the total delay and the compensation amount.
- Implementation Timeline and Past Penalties: The RBI has directed CIs and CICs to establish necessary systems and processes to implement this compensation framework within the next six months. Earlier in the year, the RBI imposed a total penalty of ₹1.01 crore on four major CICs – TransUnion CIBIL Ltd, Experian Credit Information Company of India Pvt Ltd (Experian India), Equifax Credit Information Services Pvt Ltd, and CRIF High Mark Credit Information Services Pvt Ltd – for inaccuracies and delays in updating credit information following complaints from borrowers.
This move by the RBI aims to enhance accountability and promptness in the handling of customer complaints related to credit information, ensuring a more transparent and efficient credit information system in India.