The Reserve Bank of India (RBI) today (October 26) introduced a compensation framework for customers who experience delays in the updation or rectification of their credit information. This framework, based on the Credit Information Companies (Regulation) Act, 2005 (CICRA, 2005), places the well-being and rights of consumers at the forefront.

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The compensation framework is designed to ensure that consumers are not left in the lurch due to delays in the correction or update of their credit information. It provides them with a mechanism to seek redress for any inconvenience they may face when dealing with credit information companies (CICs) and credit institutions (CIs).

One of the pivotal aspects of the framework is the provision for compensating consumers when their complaints are not resolved within a reasonable timeframe. If a complaint is not addressed within 30 calendar days from the date of filing, consumers are entitled to a compensation of ₹100 per calendar day, as an incentive for CICs and CIs to expedite the resolution of consumer grievances.

The framework also establishes clear and specific timelines for the resolution of complaints. It stipulates that if a CI fails to update credit information within 21 calendar days of being informed by the consumer or a CIC, they must compensate the complainant.

Similarly, if a CIC fails to resolve a complaint within 30 calendar days after being informed by the complainant or a CI, they must compensate the consumer, even if the CI has furnished the updated credit information within 21 calendar days. These timelines ensure that consumers are not left waiting indefinitely for the rectification of inaccuracies in their credit information.

Consumers would have the right to be informed about the status of their complaints, including cases where the complaint is rejected, RBI said. This ensures that consumers are not left in the dark about the reasons for the rejection of their complaints.

The framework also encourages cooperation among CICs and CIs to ensure that consumers' grievances are comprehensively resolved. In cases where the complaint involves inaccurate credit information from multiple CIs, the complaint should be registered with the concerned CIC, which will then coordinate with all the CIs involved to provide the consumer with a consolidated resolution.

The compensation framework lays down a clear procedure for the disbursement of compensation. Consumers can expect to receive their compensation within five working days of the resolution of the complaint.

In cases where consumers believe that they have been wrongfully denied compensation, they have recourse through the RBI Ombudsman under the Reserve Bank - Integrated Ombudsman Scheme, 2021.

The framework is designed to address core credit information-related issues. It does not apply to matters like internal administration, human resources, pay, and emoluments of staff, or disputes concerning the computation of credit scores.