RBI Imposes Compensation for Delays in Credit Data Updates

The RBI has mandated compensation of Rs 100 per day for delays in credit data updates by credit information companies (CICs) and credit institutions (CIs). Complaints unresolved beyond 30 calendar days from the date of filing will be subject to this penalty.

Banks and CICs must notify customers by email or SMS when credit information is sought or when defaults occur. If a bank fails to update credit data within 21 days, it must compensate the customer. Similarly, CICs are liable for unresolved complaints despite receiving updated data from banks within the stipulated time.

Currently, four CICs are authorized by the RBI: TransUnion CIBIL, CRIF High Mark, Equifax, and Experian. The RBI’s Master Direction on Credit Information Reporting ensures transparency and accountability in the resolution process.