Framework for compensation to customers for delayed updation/ rectification of credit information

Summary:

The Reserve Bank of India (RBI) has introduced a framework for compensating customers for delayed updating/rectification of credit information by Credit Institutions (CIs) and Credit Information Companies (CICs). The framework aims to provide a mechanism for customers to seek compensation if their complaints are not resolved within a stipulated timeframe.

Key highlights of the framework include:

Complainants are entitled to a compensation of u20b9100 per calendar day for delayed resolution of their complaints.
CIs and CICs have a combined timeframe of 30 days to resolve complaints, with 21 days for CIs and 9 days for CICs.
The compensation amount will be paid to the complainant's bank account within 5 working days of the resolution of the complaint.
The framework shall come into effect 6 months from the date of the circular, and CIs and CICs are directed to put in place necessary systems and processes to implement the framework within this period.

The framework also outlines the procedures for filing complaints, registering grievances, and providing compensation to customers.