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.
