RBI Takes Motion to Standardize Credit score Bureau Information High quality for Higher Transparency, ETCFO
New Delhi: The banking regulator is inspecting recommendations to additional streamline credit score bureau processes and cut back info asymmetry with lenders, a transfer geared toward addressing knowledge inconsistency and transparency for purchasers, mentioned individuals aware of the event.
“A technical working group has been fashioned by the RBI (Reserve Financial institution of India) to handle issues raised by monetary establishments associated to credit score info firms (CICs),” mentioned an govt, who didn’t want to be recognized.
A senior public sector financial institution govt mentioned the 4 CICs – TransUnion Credit score Info Bureau (India) Restricted (TransUnion CIBIL), Equifax, Experian and CRIF Excessive Mark – have given some recommendations to the RBI to make sure knowledge uniformity and in addition to arrange a typical grievance redressal portal.
“There’s a want for some extra widespread requirements amongst CICs so that there’s a uniformity regarding knowledge high quality index (DQI), and in addition for wanting into the data of inactive or written-off prospects,” the chief mentioned, including {that a} single-window platform for knowledge submission may also be explored.
Queries emailed to the RBI didn’t elicit a response until press time.
The RBI has prolonged the choice grievance redressal mechanism below the Reserve Financial institution-Built-in Ombudsman Scheme, 2021 to cowl grievances in opposition to CICs.
Earlier this week, RBI deputy governor M Rajeshwar Rao mentioned a key problem is identification standardisation and that CICs depend on credit score establishments to offer correct and validated IDs. “There’s a want to maneuver in direction of a singular borrower identifier, which is safe, verifiable and constant throughout the system,” he mentioned, addressing the TransUnion CIBIL’s Credit score Convention in Mumbai.
The RBI has been taking on with CICs the problem of fast disposal of complaints raised in opposition to them. In 2023 it had mandated that complainants are entitled to compensation of ₹100 per day if their criticism is unresolved inside 30 days from the preliminary submitting.
The RBI deputy governor, in his speech, additionally mentioned that CICs should aspire to extra frequent updates of credit score knowledge, as in opposition to the present fortnightly interval.
