RBI Rules on Credit Report: Now don't worry if you get a wrong credit report from the bank, you will get 100 rupees compensation every day..
Be it any financial work or taking a loan, every institution asks for your credit report. Now the question arises of how and by whom this credit report is issued. So let us tell you that the work of issuing your credit report is done by many credit bureaus. Among these, credit information companies like TransUnion CIBIL, Equifax, Experian, and CRIF Highmark are considered prominent. These companies have the license (credit report rules) to collect financial records of people, maintain them, and generate credit reports/credit scores based on this data.
These credit bureaus evaluate the customer data deposited with banks and other financial institutions such as outstanding loan amounts, repayment records, applications for new loans/credit cards, and other credit-related information, etc., and prepare the CIBIL score on that basis.
But many times complaints also come up about the wrong information related to the loan dues of a person being updated in the credit report by the banks. In such a situation, it takes a lot of time for the person to get his credit report corrected.
RBI has made a rule regarding this. As per the rule, the Reserve Bank has set a fixed time for the credit institutions (banks and NBFCs) and the credit information company to correct the mistake. If it takes more time than that, then a rule has been made for giving compensation to the complainant. Know about it here.
First, know what is the rule of RBI.
The rule of the Central Bank of India (RBI RULES) is that after receiving the complaint of the wrong credit report, if the mistake is not corrected within 30 days, then the complainant will be given compensation of Rs 100 per day based on calendar day. Meaning, that the more delayed the settlement, the more penalty will have to be paid. For this, 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 in 21 days, the bank will pay a penalty. At the same time, if the complaint is not settled even after 9 days of the bank's information, then the credit bureau will have to pay a penalty.
RBI issued this circular in the year 2023
For information, let us tell you that on 26 October 2023, RBI issued a circular, in which a penalty rule was made for not settling the credit report within 30 days. Apart from this, it was also said in the circular that if a bank or NBFC checks the credit report of a person, then it should get information about it through SMS or email from the credit information company and credit institution. The new rules have come into effect from April 2024.
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