RBI fixes Rs 100 per day compensation for customers in case CIs don’t resolve complaint in 30 days

The RBI on Thursday announced new rules that entitle complainants to a compensation of Rs 100 per calendar day in case their complaint is not resolved within a period of 30 calendar days from the date of the initial filing of the complaint with a Credit Institution (CI) or a Credit Information Company (CIC.)

The circular has been sent to all banks, NBFCs, financial institutions, asset reconstruction companies, and credit information companies.

The new rule introduced by the RBI as part of the new compensation mechanism that has been put in place for delayed updation/rectification of credit information by credit institutions (CIs) and credit information companies (CICs).

The RBI has directed CICs and CIs to implement the compensation framework as follows:

A complainant may request a CIC or CI to update the credit information by making an appropriate correction, addition or otherwise, and on such request, the CI or CIC shall take steps to update the credit information within 30 days after being requested to do so.

A CI shall pay compensation to the complainant if the CI has failed to send updated credit information to the CICs by making an appropriate correction or addition or otherwise within 21 calendar days of being informed by the complainant or a CIC.

A CIC shall pay compensation to the complainant if the CIC has failed to resolve the complaint within 30 calendar days of being informed by the complainant or a CI, despite the CI having furnished the updated credit information to the CIC within 21 calendar days of being informed by the complainant or the CIC.

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 shall also be provided by the CI and the CIC.

Compensation to be provided by the CICs/CIs to the complainant (for delayed resolution beyond 30 calendar days of filing the complaint) shall be apportioned among the CIs/ CICs concerned proportionately.