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HomeNewsCustomers can now approach RBI for complaints against credit bureaus

Customers can now approach RBI for complaints against credit bureaus

NEW DELHI: Customers of registered credit bureaus can now approach the Reserve Bank of India (RBI) for faster resolution of their credit scores and related complaints. Credit Information Companies (CICs), more commonly known as credit bureaus, will be included under the central bank’s integrated ombudsman scheme, RBI governor Shaktikanta Das said on Friday while announcing the outcome of the monetary policy review.

“This will provide a cost free alternate redress mechanism to customers of REs (regulated entities) for grievances against CICs,” as per the statement on developmental and regulatory policies.

There are currently four CICs in India – Equifax, Experian, TransUnion CIBIL, and CRIF Highmark.

The integrated ombudsman scheme was created by RBI in 2021 to allow consumers to file their grievances against registered entities for deficiency in their services if such complaints are not addressed satisfactorily or in a timely manner by the REs .

The scheme covers scheduled commercial banks, including urban cooperative banks, non-banking financial companies (NBFCs) and non-scheduled primary co-operative banks with a deposit size of 50 crore and above.

“The turnaround time of grievance redress under RB-IOS has declined considerably. In order to make the RB-IOS more broad based, it has been decided to bring Credit Information Companies (CICs) also under the ambit of RB-IOS 2021,” RBI said.

The central bank has also mandated the CICs to have their own Internal Ombudsman (IO) framework to strengthen the internal grievance redressal by CICs themselves. This will be over and above the existing customer redressal system that these companies may have.

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