The Reserve Bank of India today announced that lenders and credit information companies (CIC) will pay compensation of Rs 100 per day to customers for delays in updating and rectifying credit records. They will provide compensation if they fail to resolve matters within 30 days of a filed complaint.
The compensation framework will take effect six months from the date of this circular (October 26, 2023). These entities should establish the necessary systems and processes to implement the compensation framework within this period.
The credit institution and CIC should communicate the action taken to the complainant in all cases, including cases where the complaint has been rejected. In cases of rejection, the lender and CIC must provide reasons for the rejection to the complainant.
The compensation provided to the complainant will be apportioned among the concerned lender and CIC proportionately.
The compensation framework will not be applicable to complaints and references related to internal administration, human resources, pay, and emoluments of staff, and references in the nature of suggestions and commercial decisions of the CIC/CI.
Complaints regarding disputes or grievances concerning the computation of the credit score or credit score model will also be outside the scope of the framework for compensation to customers for delayed updating or rectification.
