RBI proposes to make credit bureaus more accountable
2 min read . Updated: 06 Apr 2023, 01:15 PM IST
PremiumRBI has also proposed CICs disclose the number and nature of customer complaints on their respective websites.
The Reserve Bank of India (RBI) on Thursday proposed making the country's credit bureaus more accountable by strengthening the grievance redressal system via measures such as alerting customers when their credit report is accessed and compensation for delayed or altered reports.
It said that its move was taking into consideration the rise in customer complaints regarding credit reports and the functioning of credit bureaus, or credit information companies (CICs), according to a report published by Reuters.
CICs collect an individual's or company's credit history — including their transactions and payment information on loans, credit cards, etc — to issue a report with a credit score, which mainly banks and financial institutions use.
The RBI, in the monetary policy committee meeting, has proposed that CICs have a timeframe in which to ingest the data they get from credit institutions.
It has also proposed that customers be alerted, via a text message or email, when their credit information is accessed and a compensation mechanism if CICs rectify or delay updating any information.
Additionally, the RBI has proposed CICs disclose the number and nature of customer complaints on their respective websites. It said that the detailed guidelines will be issued shortly, Reuters reported.
In August, the RBI included CICs under the purview of the Reserve Bank - Integrated Ombudsman Scheme to provide a cost-free alternate redress mechanism to customers of banks and non-banking finance companies for grievances against CICs.
Meanwhile, it has also revealed plans to establish a centralized portal to facilitate access to information regarding unclaimed deposits by depositors or their beneficiaries across various banks.
It has been decided to develop a web portal to enable search across multiple banks for possible unclaimed deposits, RBI Governor Shaktikanta Das said while announcing the first bi-monthly monetary policy for the current financial year 2023-24.
(With Reuters inputs)