Introducing a framework of compensation mechanism for delayed updation or rectification of credit information by the credit institutions (CIs) and credit information companies (CICs), Reserve Bank of India (RBI) has asked them to resolve complaints filed by customers within 30 calendar days or pay a fine of Rs100 per day after that.
Reserve Bank of India (RBI) has imposed a total penalty of Rs1.01 crore on all four credit information companies (CICs) for inaccurate and incomplete data and not updating credit information within 30 days after receiving complaints from borrowers.
At the same time, we must keep in mind interest rates are on the rise following three consecutive rate hikes by the Reserve Bank in four months, said Raoul Kapoor, Co-CEO, Andromeda Sales and Distributions Pvt Ltd.The retail industry reported 46 crore active loans as of March 2022, the study added.Headquartered in Atlanta, Equifax is a data, analytics, and technology company.
Equifax Inc. (NYSE:EFX), a data, analytics, and technology company, and PwC India collaborated to launch a first-of-its-kind report on the retail lending landscape in India. The first edition of the report highlighted the impact of COVID-19 and resulting disruption on sourcing and delinquency trends by loan type, lender type, and geography.
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Credit information companies (CICs) are independent, third-party organisations that collect financial data regarding loans and credit cards and share it with their members in a comprehensive manner. Individuals also can easily obtain own credit report, including credit score and history by paying certain amount to any of the four CICs in India. There are four CICs, TransUnion CIBIL Ltd (CIBIL), Experian India, Equifax Credit Information Services Pvt Ltd (Equifax), and CRIF High Mark Credit Information Services.
Financial institutes like banks, and non-banking financial companies (NBFCs) are members-subscribers of CICs. Credit information companies collect information about all borrowers from financial institutes and then convert this in a report detailing credit history of the borrower.