RBI Imposes Rs1.01 Crore Penalty on TransUnion CIBIL, Experian, Equifax & CRIF High Mark for Inaccurate Data of Borrowers
Moneylife Digital Team 27 June 2023
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.
 
TransUnion CIBIL Ltd is asked to pay a penalty of Rs26 lakh, while Experian Credit Information Company of India Pvt Ltd (Experian India) and Equifax Credit Information Services Pvt Ltd have to pay a fine of Rs24.75 lakh each. RBI imposed a penalty of Rs25.75 lakh on CRIF High Mark Credit Information Services Pvt Ltd.
 
RBI conducted statutory inspections of these credit information companies. RBI's inspection report, supervisory letter and related correspondence revealed that certain data relating to the credit information maintained by TransUnion CIBIL, Equifax Credit Information Services and CRIF High Mark was not accurate and incomplete.
 
"On receipt of complaints from some borrowers, these companies had neither updated the credit information relating to them nor informed them regarding the steps taken by it for correction of discrepancies and also the reasons for its inability to comply with the timeframe for providing correct information, within 30 days of receipt of such complaints," RBI says.
 
In the case of Experian India, RBI found that data relating to the credit information maintained by the company was not accurate and complete.
 
After considering responses from the CICs and submissions, RBI concluded that the charge of non-compliance with the provisions of the Credit Information Companies (Regulation) Act read with the CIC rules was substantiated and warranted the imposition of monetary penalty on these companies.
Comments
letustryit
2 years ago
Can CIBIL be sued for disclosing the customer data? What I observed is that, I applied for citibank loan, citibank submitted request to CIBIL, and CIBIL sent alert to all financial loan companies, and I started receiving calls from every one, when I enquired to one of company, they said, they received alert from CIBIL for myself as I am looking for loan, isn't it a breach of personal data? Any guidance how to sue this will be helpful.
VN KULKARNI
2 years ago
VERY PROMPTLY TAKEN ACTION,WHICH WAS LONG OVERDUE.
nk_agrawal
2 years ago
Banks inefficiencies and negligence is affecting Cibil in many cases. Such banks should be penalised and warned. Any downgrading should be monitored carefully as it affects borrowers creditability.
yerramr
2 years ago
There is a need for thorough overhaul of rating institutions. They apply the corporate rating model for MSMEs that have different issues and function in an ecosystem different from the rest. Yet they are made to cough up higher interest on the basis of rating by these four institutions.
rjagtap353
2 years ago
Banks charge interest on loans /advances relying on cibil score without applying mind ,and innocent borrowers are compelled to pay excess interest.
polisettysd
2 years ago
Sadly this is True & is the story on one side while on the other side even a few banks don't update/submit /share the updated credit info pertaining their customers as required by the RBI.
nasaseshu
2 years ago
Omg
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