Credit Information Companies and Credit Institutions Enhance Customer Service

In the Bi-Monthly Monetary Policy Statement 2023-24 on April 6, 2023, it was announced that a comprehensive framework will be established to enhance and improve the effectiveness of the grievance redress mechanism and customer service offered by Credit Institutions (CIs) and Credit Information Companies (CICs).

The Reserve Bank of India has thus issued directions vide circular dated 26 October bearing reference number RBI/2023-24/73 DoR.FIN.REC.49/20.16.003/2023-24 to CICs to improve the grievance redress mechanism and customer service within the Banking sector.

The key directives are as follows:

• Sending customer alerts whenever Specified Users (SUs) access their Credit Information Reports (CIR).
• Conducting special awareness campaigns to educate customers about the advantages of voluntarily sharing their mobile numbers and email addresses.
• Appointing dedicated nodal points for CICs to handle customer grievances.
• Conducting a Root Cause Analysis (RCA) on customer complaints and communicating the findings to senior management.
• Providing customers with explanations regarding the grounds for denying data correction requests.
• Regular review of the “Search & Match” logic algorithm by CICs is necessary.
• Ensuring prompt acquisition of credit information data and transparent reporting of grievances on CIC websites.
• Ensuring convenient availability of Free Full Credit Reports (FFCR) annually.

CICs and CIs that fail to comply with these instructions may be subject to penalties as outlined in the Credit Information Companies (Regulation) Act, 2005.

The directions will take effect six months from the date of the circular.