The Reserve Bank of India (RBI) has announced that individuals having problems with credit information companies such as CIBIL, Experian, Equifax etc. can directly file a complaint with the central bank. was announced by reserve Bank of India Governor said in a statement after the monetary policy review today.
These credit information companies (CICs), commonly called credit bureaus, collate customer data from banks, credit card companies, and other financial institutions. Based on the data collected, these CICs assign a score indicating whether the customer is a good borrower or a bad borrower. However, it may happen that the information available with the credit bureaus is incorrect and as a result the wrong credit score is not corrected within 30 days. From now on if there is no resolution from these bureaus within 30 days, the borrower can file a complaint against the CIC with RBI.
According to the Governor’s statement, “The Reserve Bank – Integrated Ombudsman Scheme (RB-IOS) has improved the customer grievance redressal mechanism. The turnaround time for grievance redressal under RB-IOS has come down significantly. RB-IOS has been made more comprehensive. It has been decided to include Credit Information Companies (CICs) under the RB-IOS framework. With a view to strengthen grievance redressal, it has been decided to make it mandatory for the CIC to have its own Internal Ombudsman (IO) framework.”
As per the Statement on Developmental and Regulatory Policies, “The Reserve Bank-Integrated Ombudsman Scheme (RB-IOS) 2021, covers regulated entities (REs) such as scheduled commercial banks, including urban co-operative banks, non-banking financial companies (NBFCs) and regulated entities (RE). Non-scheduled primary co-operative banks with deposits of Rs 50 crore and above. In order to make RB-IOS more broad-based, it has been decided to bring Credit Information Companies (CICs) also under the purview of RB-IOS 2021 It will provide cost-free alternative redressal mechanism to the customers of RE. Grievances against CIC In addition, to strengthen the internal grievance redressal of CIC and to make it more efficient, there is a plan to bring CIC under the Internal Ombudsman (IO) framework. A decision has also been taken.”
At present, there are four credit information companies in India – namely, Credit Information Bureau (India) Limited (CIBIL), Equifax Credit Information Services Private Limited, Experian Credit Information Company of India Private Limited and CRIF High Mark Credit Information Services Private Limited.
Neeraj Dhawan, Country Manager, Experian India, says, “It was announced that as a part of its development and regulatory policies to improve the credit ecosystem in the country, Credit Information Companies (CICs) will be brought under the integrated ambit of RBI. Ombudsman Scheme will be introduced. It will offer a faster redressal mechanism for grievances. Also, CIC will need to have its own Internal Ombudsman (IO) framework. This is a positive step that will ensure timely access to credit to the consumers. to help resolve their concerns. In control of their finances.”
What is the Integrated Ombudsman Scheme of RBI?
The central bank launched the Reserve Bank – Integrated Ombudsman Scheme, 2021 in November 2021. The scheme integrates the existing three Ombudsman Schemes of RBI, namely (i) Banking Ombudsman Scheme, 2006; (ii) the Ombudsman Scheme for Non-Banking Financial Companies, 2018; and (iii) the Ombudsman Scheme for Digital Transactions, 2019. Some of the salient features of the scheme are:
- Now the complainant will no longer need to identify under which scheme he should file a complaint with the Ombudsman.
- The scheme defines ‘deficiency in service’ as the basis for filing a complaint, with a specified list of exclusions. Hence, complaints will no longer be dismissed merely for “not falling under the grounds listed in the scheme”.
- The scheme has abolished the jurisdiction of each Lokpal office.
- A centralized Receipt and Processing Center has been set up at RBI, Chandigarh for receipt and initial processing of physical and email complaints in any language.
- The responsibility of representing the regulated entity and furnishing information in respect of complaints filed by the customers against the regulated entity shall rest with the Principal Nodal Officer in the rank of General Manager in a Public Sector Bank or equivalent.
- The Regulated Entity shall have no right to appeal in cases where an award is issued against it by the Ombudsman for not furnishing satisfactory and timely information/documents.