RBI Mandates CIs/CICs to Compensate Complainants With Rs 100 Per Day If Complaints Remain Unresolved Beyond 30 Days

Circular No. RBI/2023-24/72 DoR.FIN.REC.48/20.16.003/2023-24, Dated: 26.10.2023

Earlier, the RBI vide Statement on Developmental and Regulatory Policies announced that a compensation mechanism will be put in place for delayed updation/rectification of credit information by the credit institutions (CIs) and credit information companies (CICs). Now, the framework for implementing this mechanism has been released.

Under this framework, the complainants shall be entitled to a compensation of Rs 100 per calendar day in case their complaint is not resolved within a period of 30 calendar days.

The complainant shall be advised by the CI/ CIC of the action taken on the complaint in all cases, including the cases where the complaint has been rejected. In cases of rejection, the reasons for rejection must also be provided by CI and CIC.

The compensation to be provided by the CICs/CIs to the complainant for delays in resolving complaints beyond 30 calendar days must be apportioned among the CIs/ CICs concerned proportionately

Further, the CICs/CIs must make appropriate provisions in their complaint submission format (both online and offline) to enable the complainant to submit the contact details, email ID, and bank account details/Unified Payment Interface (UPI) ID for crediting the compensation amount. The onus of providing accurate details will lie with the complainant and the CIs/CICs will not be held responsible for any incorrect information provided by the complainant.

Also, the compensation amount must be credited to the bank account of the complainant within 5 working days of the resolution of the complaint. The compensation framework shall come into effect six months from the date of this circular.

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