RBI imposes monetary penalty on all four credit info firms
the Reserve Bank of India (RBI) has imposed a fine of about EGP 25,000 each on four credit information companies currently operating in the country for failing to comply with certain provisions of the Credit Information Companies Act (Regulations) / CIC, 2005, read with CIC Rules, 2006.
TransUnion CIBIL financial fine is $26 lakh; CRIF High Mark Credit Information Services (25.75 lakh); Indian Experian Credit Information Company (24.75 lakh); and Equifax for credit information services (24.25 lakh).
In the case of TransUnion CIBIL, CRIF High Mark Credit Information Services and Equifax Credit Information Services, the Reserve Bank of India (RBI) said its statutory examination of these companies in relation to their financial status as of March 31, 2021, examination of the inspection report, supervisory letter and all correspondence related to them has revealed That some of the data related to credit information they maintain was not accurate and complete.
Moreover, when complaints were received from some borrowers, the companies did not update credit information about them nor did they inform them of the steps it had taken to correct discrepancies and also the reasons for their inability to comply with the time frame for providing the correct information within 30 days of receiving such complaints, according to the RBI statement.
In the case of India’s Experian Credit Information Company, RBI said its legal examination of the company in relation to its financial position as of March 31, 2021 and examination of the inspection report, supervision letter, and all relevant correspondence relating to the same revealed that certain data relating to credit information held by the company were not Be accurate and complete.
Accordingly, a notice has been issued to the aforementioned companies advising them to show the reason for not imposing a penalty for their failure to comply with the provisions of the CIC(R) Act read with the CIC rules, as stated therein, the central bank said.
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After considering these companies’ responses to the notice, additional submissions they made, and oral submissions made during the in-person hearing, RBI concluded that the charge of non-compliance with the provisions of the CIC(R) Code and CIC Rules was substantiated and warranted a monetary fine, the statement said. .
In all four cases, the RBI said its action was based on shortcomings in regulatory compliance and was not intended to pronounce on the validity of any transaction or agreement they entered into.