The Reserve Bank told the credit institution that if the customer’s complaint is not resolved within 30 days, then a compensation of Rs 100 will have to be paid daily.
The Reserve Bank is tightening the rules for CIBIL, Experian and all other credit information companies. The central bank is taking strict action against companies reporting credit scores. RBI said that it is necessary to send an alert when the credit score of the customer is asked. Companies send alerts to customers through SMS/e-mail. If the complaint is not resolved within 30 days, a fine of Rs 100 will be imposed daily.
Necessary to inform before defaulting
If a customer is about to default, it is important to inform the customer before reporting the default. Loan giving institutions should share all the information by sending SMS/e-mail. Apart from this, banks and loan disbursing institutions should appoint nodal officers. Nodal officers will work to resolve credit score related problems.
The rule will come into effect from April 26
It is also important to explain the reason for non-correction of data in the credit bureau. Also mention the number of complaints on the credit bureau website. Apart from this, free credit report is also necessary for individuals once a year. The new rules will come into effect after 6 months from today i.e. from 26 April 2024. In April itself, RBI had warned about implementing such rules.
Fine of Rs 100 per day
According to the rules, if the complaint is not resolved, the customers will get compensation and the credit bureaus and loan disbursing institutions will pay the compensation. There is a rule to pay compensation if the complaint is not resolved after 30 days. The complainant will get compensation at the rate of Rs 100 per day. The loan disbursing institution will get 21 days and the credit bureau will get 9 days. If the bank does not inform the credit bureau within 21 days, the bank will pay compensation. If the repair is not done within 9 days of informing the bank, the credit bureau will pay compensation.
