The Reserve Bank of India (RBI) has introduced a compensation framework for delayed updation/ rectification of credit information vide circular bearing reference number RBI/2023-24/72 DoR.FIN.REC.48/20.16.003/2023-24 dated 26 October, 2023 in line with the Statement on Developmental and Regulatory Policies. This framework aims to benefit consumers and ensure that resolutions are provided in a timely manner.
The compensation framework encompasses several key provisions, which are as follows:
- Complainants have the right to receive a compensation of ₹100 per calendar day if their complaint remains unresolved for more than thirty (30) calendar days starting from the date of the initial filing.
- If a credit institution (CI) fails to update credit information within twenty-one (21) calendar days after being notified by the complainant or a credit information company (CIC), they are required to provide compensation to the complainant.
- The CI/CIC is responsible for notifying the complainant about the outcome of their complaint, which includes cases where the complaint is rejected. In such cases, the reasons for rejection should be clearly communicated to the complainant.
- The compensation amount will be credited to the complainant’s bank account within five (5) working days after the complaint is resolved.
- If complainants have been wrongly denied compensation by CIs or CICs, they can file a complaint with the RBI Ombudsman under the Reserve Bank – Integrated Ombudsman Scheme, 2021.
- The compensation framework does not cover disputes under Section 18 of CICRA, 2005, internal administration matters, disputes related to credit score calculations, and complaints already being addressed in other forums.
The framework will come into effect six months from the date of the circular.