In a recent meeting held by the Reserve Bank of India (RBI), Deputy Governor Shri Swaminathan J chaired discussions with Managing Directors and Chief Executive Officers of Credit Information Companies (CICs). The meeting aimed at addressing concerns regarding credit information and improving the overall efficiency of these entities in the financial system.
The Deputy Governor, while acknowledging the crucial role played by CICs, expressed concerns over the increasing number of customer complaints and issues arising during RBI’s supervisory assessments. In response to these concerns, six key areas were highlighted for the CICs to concentrate on:
- Data Quality Improvement: Emphasis was placed on enhancing the quality of data to ensure accuracy and reliability.
- Timely Customer Complaint Resolution: The need for swift resolution of customer complaints was stressed to enhance customer satisfaction.
- Strengthening Internal Ombudsman Framework: CICs were advised to bolster their internal ombudsman framework for effective conflict resolution.
- Efficient Handling of Data Correction Requests: Streamlining the process for handling data correction requests to ensure accuracy in credit information.
- Cybersecurity and Data Privacy: The importance of robust information security governance framework for strengthening cybersecurity and ensuring data privacy.
- Concerns on Data Usage: The meeting addressed concerns related to the usage of data for consulting, analytics, and other purposes.
During the meeting, CICs provided feedback and shared the initiatives being taken in collaboration with credit institutions (CIs) to enhance data quality. The Reserve Bank proposed ongoing engagements with both CICs and CIs to further improve their functioning and safeguard the interests of customers.
This collaborative effort is aimed at addressing challenges and fostering a more robust and reliable credit information system in the financial landscape.
