RBI Tightens Protocols on Credit Information Reporting

The Reserve Bank of India (RBI) issued a new master direction to banks and financial institutions on credit information reporting. Credit Information Companies must alert customers when their reports are accessed, and credit institutions must disclose reasons for data correction rejections, ensuring a standardized reporting framework.

The Reserve Bank of India (RBI) unveiled a comprehensive master direction on Monday, consolidating various guidelines aimed at enhancing the reporting of credit information by banks and financial institutions. This initiative strives to standardize the process while maintaining the confidentiality of sensitive data.

As part of this directive, Credit Information Companies (CICs) are now required to notify customers via SMS or email whenever their Credit Information Report (CIR) is accessed by specified users. This measure ensures transparency and keeps consumers informed about the status of their credit profiles.

Additionally, banks and Non-Banking Financial Companies (NBFCs) must clearly communicate to customers the reasons for denying any data correction requests. This step aims to help customers better understand discrepancies in their credit reports. Customers are also entitled to compensation if complaints are not resolved promptly.

(With inputs from agencies.)