Reserve bank of India Order: RBI said that it is necessary to send an alert when the credit score of the customer is asked. The Reserve Bank is tightening the rules for CIBIL, Experian and all other credit information companies. It was told that companies should send alerts through SMS-e-mail and the complaint will have to be resolved within 30 days.
Reserve bank of India Order: When you ask for a loan, the bank checks your credit score. That means he looks at your total loans and their past payment records. But now the big decision is that in future whenever the bank tries to get this information (knowing your CIBIL score) you will be informed. Apart from this, the Reserve Bank of India (RBI) asked the lenders, financial institutions and credit bureaus to resolve the complaints lodged by the customers within 30 days or else pay a penalty of ₹ 100 per day. .
RBI also directed Credit Institutions (CIs) and Credit Information Companies (CICs) to introduce a compensation framework for late updation or correction of credit information.
The central bank has directed CICs and CIs to prepare the process and implement the compensation framework in the next six months.
What did RBI say?
RBI said that it is necessary to send an alert when the credit score of the customer is asked. The Reserve Bank is tightening the rules for CIBIL, Experian and all other credit information companies. It was told that companies should send alerts through SMS-e-mail and the complaint will have to be resolved within 30 days.
What is the function of CICs?
CICs maintain credit information of borrowers – individuals, corporates and small businesses – which can be accessed by banks and other lenders. They collect information from various credit providers including banks, credit card companies and non-bank financial institutions.
In June, the RBI had imposed a combined penalty of ₹1.01 crore on all four CICs for incorrect, incomplete data and not updating credit information within 30 days of receiving complaints from borrowers.
