Presented by Reserve Bank of India. The new system has been introduced following consumer complaints against credit information companies (CICs) such as CIBIL for providing inaccurate reports. The RBI said on Thursday after the conclusion of the monetary policy meeting that a comprehensive framework has been put in place to improve complaint redressal and customer service of credit institutions and credit information commissions.
In this system, the Credit Information Commission will henceforth be brought under the Reserve Bank Integrated Ombudsman Scheme (RB-IOS). Customers are alerted when CIC accesses their credit information. It also goes into additional measures such as compensation for delayed updates or correction of credit information. Also under the new system, credit information companies will be given a timeline for processing data received and disclosure of consumer complaints received on their websites.
Why did RBI pull back from interest rate hike? | RBI | Interest Rate | Inflation
RBI said that detailed guidelines for these measures will be released soon. Thursday’s statement came after the monetary policy meeting decided to keep the repo rate unchanged at 6.5 percent. The increase in repo rate by the central bank has caused some people to worry because of the increase in lending rates by commercial banks.
What is R-iOS?
The Reserve Bank Integrated Ombudsman Scheme is a dispute resolution mechanism launched by the RBI in July 2006. It includes all scheduled commercial banks, regional rural banks and primary co-operative banks. Customers can file complaints related to ATM transactions, credit card issues, loan disbursement, deposit accounts etc. here.
Credit Information Companies (CICs) play an important role in credit information reporting in the Indian financial system. They provide credit reports to lenders and borrowers. However, there has been an increase in consumer complaints regarding the accuracy of their credit reports and performance.
One of the major challenges faced by consumers is delay or correction of credit information. Credit information companies take a long time to correct inaccurate information. Consumers complain that this has significant effects on their credit score. Complaints have also been raised about the lack of transparency regarding the use of credit information.
Therefore, RBI has proposed to provide SMS or email alerts to customers whenever CICs access customers’ credit information. This gives consumers more control over their personal information and allows them to monitor who is accessing their credit reports.
Also Read: Mango can be bought on EMI; A businessman with a new idea
CICs get more data from various credit institutions. Therefore, customers have reported that CICs take a long time to process this data. As a continuation of customer-friendly measures, RBI has also announced that it will set up a centralized public web portal to search for unclaimed deposits. Experts opine that this will bring more transparency and accountability in the financial system.
Read Latest Business News and Malayalam News
