The Reserve Bank of India (RBI) has released a Master Direction consolidating guidelines for banks and financial institutions regarding credit information reporting. Issued on January 6, 2025, this directive aims to establish a standardized framework for reporting and disseminating credit information while safeguarding the confidentiality and security of sensitive credit data.

Key Highlights of the Master Direction:

Credit Information Companies (CICs):

• CICs are now required to notify customers via SMS or email whenever their Credit Information Report (CIR) is accessed.
• Currently, four CICs are registered with the RBI:
  • Credit Information Bureau (India) Limited (CIBIL)
  • Equifax Credit Information Services Private Limited
  • Experian Credit Information Company of India Private Limited
  • CRIF High Mark

Credit Institutions:

• Banks and other financial institutions must clearly inform customers of the reasons behind the rejection of data correction requests.

Complainant Rights:

• Complainants are entitled to compensation if their complaints are unresolved within 30 days.
• The RBI mandates, “Complainants shall be entitled to a compensation of Rs 100 per calendar day if their complaint is not resolved within thirty (30) calendar days from the date of the initial filing of the complaint with a CI/CIC.”

This Master Direction reinforces accountability and transparency in credit information handling, ultimately protecting consumer interests and enhancing trust in the financial system.