RBI Raises Concerns Over Credit Information Companies Conduct, Complaints

The Reserve Bank of India (RBI) has reported an increase in customer complaints against credit information companies (CICs). The central bank also identified certain issues in the conduct of CICs during its supervisory assessment, although the specific concerns were not disclosed in the official statement.

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Meeting with CICs

Deputy Governor Swaminathan J met with managing directors and chief executives of CICs to discuss these matters. During the meeting, Swaminathan highlighted the rise in customer complaints related to credit information and the concerns identified by the RBI's supervisory assessment.

Areas of Focus for CICs

Swaminathan emphasized several areas where CICs need to improve their practices. These include:

• Timely redressal of customer complaints
• Strengthening the internal ombudsman framework
• Streamlining the process for handling data correction requests
• Enhancing cybersecurity and data privacy through a robust information security governance framework
• Improving data quality
• Addressing concerns arising from the use of data for consulting and analytics

Importance of CICs

Despite the concerns raised, Swaminathan acknowledged the crucial role played by CICs in the financial system.

Attendees

The meeting was attended by executive directors and other senior officials from the Department of Supervision and Department of Regulation.