The Reserve Bank of India (RBI) has issued directives to Credit Information Companies (CICs) to promptly notify clients through SMS or email whenever banks or Non-banking Financing Companies (NBFCs) access their Credit Information Report (CIR). “This move is aimed at fostering transparency and keeping customers informed about the usage of their credit information” it said.
With data transparency, customers will know how their information is gathered, where it is stored, and how it is accessed and protected. In India Experian, Equifax, TransUnion CIBIL, and CRIF Highmark are authorised credit information companies and now they are required to follow the above directives of the banking regulator.
Further, the financial institutions like banks and NBFCs are also mandated to inform consumers via SMS or email whenever they submit information to credit information companies regarding the credit default or Days Past Due (DPD) status of the customer. This dual-notification system ensures that clients are consistently updated on their credit information status.
RBI has directed Credit Institutions (lenders) to inform customers about the reasons for the rejection of their data correction requests. Credit Information Companies (CICs) are required to circulate a comprehensive list of rejection reasons to all Credit Institutions for consistent communication during the grievance redress process. This is to provide greater clarity on data correction requests.