Governance Deficit in Infosys?

From the very beginning, Infosys set standards and created benchmarks in transparency, good governance and accountability.  But when circumstances changed, this pretty picture began to get dented bit by bit, starting with TV Mohandas Pai’s stormy exit around the time that NRN hung up his boots

“The biggest comeback since Indira Gandhi,” is how The Economist blog described the return of...

Premium Content
Monthly Digital Access

Subscribe

Already A Subscriber?
Login
Yearly Digital Access

Subscribe

Moneylife Magazine Subscriber or MAS member?
Login

Yearly Subscriber Login

Enter the mail id that you want to use & click on Go. We will send you a link to your email for verficiation
  • CIBIL: Customers Continue To Suffer

    Who checks the quality of technology or data-matching algorithms used by CIBIL or the other credit bureaus? What is the redress process, when it fails?

    At Moneylife’s ‘Open House’ with RBI deputy governor Dr KC Chakrabarty on 3rd June, an angry customer stood up to complain about Credit Information Bureau of India Limited (CIBIL), which practically enjoys a monopoly of the credit bureau business. On 4th June, we received an angry letter from one Umesh Dhawan whose Rs5-lakh loan was rejected because he was shown as a defaulter by CIBIL. He was under the impression that his banker had reported him. But we discovered that the problem was far worse. CIBIL apparently used its own algorithm to match data and ended up mixing his data with that of another person called Umesh Uhawan. Once again, the question is: Who checks the quality of technology or data-matching algorithms used by CIBIL or the other credit bureaus? What is the redress process, when it fails?

    CIBIL claims that the number of incorrect credit data, because of inaccurate matching of information, is low and on par with credit bureaus of similar size abroad. Who will verify if this claim is true? And how is a customer going to be compensated for the untold harassment suffered? If, as CIBIL claims, the mismatch of data leading to wrong reporting is so low, surely, RBI can mandate compensation for customers. At present, CIBIL gets away with a vague regret letter and a correction of records, when its goof up and poor redress mechanism can ruin the financial life of its hapless victim.

     

    NOTE: If you are facing similar issue, you may want to get help from Moneylife Foundation's free Credit Helpline http://www.freecredithelp.in/

  • Like this story? Get our top stories by email.

    User

    COMMENTS

    Ashok Kumar Bhargava

    6 years ago

    The matter is not as to what we have to pay to get our report.My emphasis was on customers reach to the data so that if some error is there it can be pointed out by the customer/client and rectification thereof is sought without delay as had been the case with Shri Dhawan.

    Umesh Dhawan

    6 years ago

    I have recieved the following mail from CIBIL after 4 Reminders
    --------------------------------
    Dear Sir,

    We refer to your email dated 14/6/2013 regarding your CIBIL Report.

    At the outset, we apologize for the delay in response.

    We would like to inform you that our Managing Director is currently travelling. We are looking into the issue and will revert to you shortly.

    Thanking you.

    Best Regards,

    Berly Varghese
    ____________________________________________
    Credit Information Bureau (India) Limited
    Hoechst House, 6th Floor,
    193, Backbay Reclamation,
    Nariman Point,
    Mumbai 400 021, India
    _____________________________________________

    Umesh Dhawan

    6 years ago

    I have recieved the following mail from CIBIL after 4 Reminders
    --------------------------------
    Dear Sir,

    We refer to your email dated 14/6/2013 regarding your CIBIL Report.

    At the outset, we apologize for the delay in response.

    We would like to inform you that our Managing Director is currently travelling. We are looking into the issue and will revert to you shortly.

    Thanking you.

    Best Regards,

    Berly Varghese
    ____________________________________________
    Credit Information Bureau (India) Limited
    Hoechst House, 6th Floor,
    193, Backbay Reclamation,
    Nariman Point,
    Mumbai 400 021, India
    _____________________________________________

    Sucheta Dalal

    6 years ago

    Mr Nandy's comment is excellent. While there is so much criticism about HDFC Bank it is very nice to hear they didnt not charge anything for a credit report!

    Umesh Dhawan

    6 years ago

    I have still not received any call back from CIBIL regarding the loss suffered by me. They think they are going to get away with it. They are harassing people.

    Umesh Dhawan

    6 years ago

    I have still not received any call back from CIBIL regarding the loss suffered by me. They think they are going to get away with it. They are harassing people.

    Umesh Dhawan

    6 years ago

    I received a call from CIBIL in which they told me that they will get back to me regarding compensation for the loss suffered by me. It has been 5 days and they do not have the coutesy of calling me up again. This despite I have sent a mail to their Managing Director. Pathetic is the Word for CIBIL.

    Umesh Dhawan

    6 years ago

    I received a call from CIBIL in which they told me that they will get back to me regarding compensation for the loss suffered by me. It has been 5 days and they do not have the coutesy of calling me up again. This despite I have sent a mail to their Managing Director. Pathetic is the Word for CIBIL.

    Ashok Kumar Bhargava

    6 years ago

    Presently a customer has to pay arround Rs.400-500 to have their own Credit rating. I think CIBIL should allow a customer to see their own data of credit rating so that they can request for rectification if some thing wrong has been reported/posted in their database. This will help customers in getting the rating corrected if any factual error exists.

    REPLY

    Sucheta Dalal

    In Reply to Ashok Kumar Bhargava 6 years ago

    You can get your credit report from your bank by paying Rs50. Please read moneylife cover story on the subject.

    Dayananda Kamath k

    In Reply to Ashok Kumar Bhargava 6 years ago

    so we pay them for correcting their mistakes. we are giving incentive for committing mistakes. this is how new businesses are generating income.

    MDT

    In Reply to Ashok Kumar Bhargava 6 years ago

    Dear Mr Bhargava,
    Thanks for your comment.
    Kindly note a customer can receive his/her credit report for less than Rs150 (varies between credit bureaus). Similarly, CIBIL charges over Rs400 for Credit Score. You may also want to read http://www.moneylife.in/article/credit-s... ; http://foundation.moneylife.in/?th_galle... and http://www.moneylife.in/article/who-is-a...
    Thanks
    MDT

    R Nandy

    In Reply to MDT 6 years ago

    I had requested the credit report via HDFC Credit Cards.They have a form for making the request which needs to be posted to HDFC.It was written that Rs50 is charged for the credit report.But,they did not charge for it.I had requested it just for curiosity.

    R Nandy

    In Reply to R Nandy 6 years ago

    This is the link:
    http://www.hdfcbank.com/assets/pdf/CIBIL...

    Dayananda Kamath k

    6 years ago

    who is to be blamed for this. it is the regulators only. they make everything compulsory using powers conferred in them, without putting in place a proper mechanism to implement the same and grievances redressal systems.

    Jet Airways CEO Nikos Kardassis quits; Hameed Ali appointed acting CEO

    Ever since the airline clinched a stake sale deal with the Abu Dhabi-based Etihad Airways in the last week of April, the industry was abuzz with speculation that Kardassis was on his way out

    Jet Airways chief executive Nikos Kardassis has resigned after a five-year stint with the company, and chief operating officer Capt Hameed Ali is the interim chief executive, the airline said on Friday.

     

    The Naresh Goyal-led airline said in a filing to the BSE that Kardassis resigned with effect from 5th June, but it did not give any reason.

     

    This was his second innings with Jet. Ever since the airline clinched a stake sale deal with the Abu Dhabi-based Etihad Airways in the last week of April, whereby it agreed to sell 24% stake for Rs2,042 crore, the industry was abuzz with speculation that Kardassis was on his way out.

     

    Etihad reportedly demanded a change in the management under the deal, including removal of Goel’s wife from the airline’s board.

     

    Under the sale agreement, the terms of which are being reworked following the Securities and Exchange Board of India’s (SEBI) objections, the Arab carrier will get three board members, including the CEO.

     

    Kardassis returned to Jet on 15 October 2009 as acting CEO after Wolfgang Prock-Schauer quit, and was appointed CEO from 20 May 2010. Kardassis’ first term with Jet started in 1994 and lasted till 1999 and he was instrumental in the restructuring, cost/network management of the airline.

     

    He had also served as senior vice-president, the Americas, for Jet, prior to his appointment as the CEO.

     

    Meanwhile, the Foreign Investment Promotion Board will take up Gulf carrier Etihad’s planned stake buy in Jet Airways India on Tuesday.

     

    For the quarter ended March, Jet reported deeper losses at Rs495.53 crore against a net loss of Rs298.12 crore for the same period year-ago. Total income from operations declined to Rs3,922 crore in the March quarter from Rs4,041.61 crore in the year-ago period.

     

    For the full fiscal 2012-13, the second largest airline improved its bottomline by massively narrowing the losses to Rs485.5 crore against a net loss of Rs1,236 crore in FY12.

  • User

    We are listening!

    Solve the equation and enter in the Captcha field.
      Loading...
    Close

    To continue


    Please
    Sign Up or Sign In
    with

    Email
    Close

    To continue


    Please
    Sign Up or Sign In
    with

    Email

    BUY NOW

    online financial advisory
    Pathbreakers
    Pathbreakers 1 & Pathbreakers 2 contain deep insights, unknown facts and captivating events in the life of 51 top achievers, in their own words.
    online financia advisory
    The Scam
    24 Year Of The Scam: The Perennial Bestseller, reads like a Thriller!
    Moneylife Online Magazine
    Fiercely independent and pro-consumer information on personal finance
    financial magazines online
    Stockletters in 3 Flavours
    Outstanding research that beats mutual funds year after year
    financial magazines in india
    MAS: Complete Online Financial Advisory
    (Includes Moneylife Online Magazine)
    FREE: Your Complete Family Record Book
    Keep all the Personal and Financial Details of You & Your Family. In One Place So That`s Its Easy for Anyone to Find Anytime
    We promise not to share your email id with anyone