CICs to pay Rs 100 per day to customers for credit info updation delay: RBI

Credit information companies (CICs) will have to pay a compensation of Rs 100 per day to customers for delays in updation or rectification of their credit information, the Reserve Bank said on Thursday.

Credit institutions (CIs) and credit information companies (CICs) have been given six months to put in place the necessary systems and processes to implement the 'Framework for compensation to customers for delayed updation/rectification of credit information'.

In a circular, the Reserve Bank directed CICs and CIs to implement the compensation framework for delayed updation/rectification of credit information.

"Complainants shall be entitled to a compensation of Rs 100 per calendar day in case their complaint is not resolved within a period of thirty (30) calendar days from the date of the initial filing of the complaint by the complainant with a CI/ CIC," it said.

The circular further said the complainant can approach the RBI Ombudsman in case of wrongful denial of compensation by CIs or CICs.

With the increase in customer complaints regarding credit information reporting and the functioning of CICs, the RBI has decided to put in place a comprehensive framework for strengthening and improving the efficacy of the grievance redress mechanism and customer service provided by CIs and CICs.

Credit Information Bureau (India) Limited (CIBIL), Equifax, Experian, and CRIF Highmark are some of the major credit information companies in India.