New Delhi: Banks taking inordinately long to address customer complaints will soon have to pay a price.
The Reserve Bank of India (RBI) has issued an order outlining penalties for banks and financial institutions that will protect customers’ interests.
From now, if a complaint remains unresolved within 30 calendar days from the date of filing, the complainant will be entitled to compensation of Rs 100 per day.
There have been repeated complaints by customers regarding lengthy delays when they seek resolution or updates to their data from banks, financial companies, Credit Information Companies (CICs), and Credit Institutions (CIs).
RBI has now directed that CICs must inform customers via email or SMS when their credit information is accessed by a bank or non-banking financial company (NBFC). Similarly, banks must inform customers about defaults.
RBI’s latest directive has mentioned two significant deadlines.
First, if a Credit Information Company fails to resolve a complaint within 30 days of receipt, it will have to compensate the complainant at the rate of Rs 100 per day.
Also, if a Credit Institution does not provide updated credit information to the CIC within 21 days of being informed by the complainant or the CIC, it will be liable for compensation of Rs 100 per day.
Currently, four CICs operate in India with RBI authorisation — TransUnion CIBIL, CRIF High Mark, Equifax and Experian.
In every instance, the CI or CIC must inform the complainant about the action taken on the complaint. Even if a complaint is dismissed, reason/s must be conveyed to the complainant.
