The Reserve Bank of India (RBI) has penalized all four credit bureaus over rule violations, including inadequate maintenance of accurate credit information. The financial regulator has levied Rs 1 crore worth collective monetary penalties on these companies.
The companies involved in this action are Experian Credit Information Company of India, CRIF High Mark Credit Information Services, TransUnion CIBIL, and Equifax Credit Information Services, as per the press release on the website of the RBI.
RBI has imposed a monetary penalty of Rs 24.75 lakh on Experian Credit Information Company of India, Rs 26 lakh on TransUnion CIBIL, Rs 24.25 lakh on Equifax Credit Information Services and Rs 25.75 lakh on CRIF High Mark Credit Information Services.
“These actions are based on the deficiencies in regulatory compliance and are not intended to pronounce upon the validity of any transaction or agreement entered into by the companies,” RBI said in the release.
During the statutory inspection conducted by the RBI, it was found that certain credit information maintained by these companies was incomplete and inaccurate. Some also failed to update the credit information of borrowers and provide them with necessary information regarding the correction process.
As a result, a notice was issued to the companies to explain why penalties should not be imposed for non-compliance with the CIC (R) Act and CIC Rules.
In April, RBI announced that it will bring all credit berries under the aegis of the RBI Integrated Ombudsman Scheme. The apex banking body took this step to penalise such firms for delays in updating credit information while limiting the indiscriminate use of customer data by lenders.