Daijiworld Media Release – New Delhi

New Delhi, Jan 6: To enhance consumer protection, the Reserve Bank of India (RBI) has introduced new guidelines requiring banks and financial institutions to compensate customers for delayed resolution of complaints.

Key Highlights:

• Rs 100 Per Day Compensation: If a customer’s complaint remains unresolved for over 30 days, the complainant will be entitled to Rs 100 per day as compensation.

• Mandatory Notifications: Credit Information Companies (CICs) must notify customers via SMS or email when their credit information is accessed. Similarly, banks must inform customers about defaults. Delays in providing updates within 21 days will result in penalties of Rs 100 per day.

RBI Deadlines:

1. Complaint Resolution: CICs must address customer complaints within 30 days. Failure to do so will make them liable for compensation.

2. Credit Information Updates: Credit Institutions (CIs) must update credit information with CICs within 21 days of a complaint. Non-compliance will also lead to penalties.

Authorized CICs in India:

The RBI has authorized four CICs in India:
• TransUnion CIBIL
• CRIF High Mark
• Equifax
• Experian

Communication Protocols:

CICs and banks are required to inform customers of any action taken on complaints, including rejections, with reasons provided. Notifications about defaults or delays in credit updates must be sent via SMS or email, where contact details are available.

This directive aims to address delays in resolving customer issues and improve accountability among financial institutions, ensuring timely updates and enhanced transparency in banking services.