In a 1st, RBI slaps fines on all 4 credit bureaus
Mumbai, June 27, 2023
The RBI has fined all four credit information bureaus, in the first such concerted action, for not maintaining accurate borrower data following customer complaints.
In the case of TransUnion Cibil, CRIF High Mark and Equifax, the RBI said that in addition to detecting inaccurate data, there have also been complaints from borrowers about the bureaus not updating credit information and not informing the complainants of the steps taken to correct the discrepancies within the prescribed 30 days. The fourth company Experian had not maintained accurate data relating to credit information.
The RBI has also penalised StanChart for assigning multiple customer ID numbers to the same individual customer, violating the central bank’s norms. Seven co-operative banks were also fined by the regulator for various violations.
The action in respect of all four credit information companies pertained to their statutory inspection by the RBI regarding their financial position as of March 31, 2021. Following the review, the bureaus were asked to show cause why action should not be taken against them.
The penalties are: Rs 24. 8 lakh for Experian, Rs 25. 8 lakh for CRIF High Mark, Rs 24. 3lakh for Equifax and Rs 26 lakh on TransUnion Cibil.
Although credit bureaus supply lenders with customer repayment behaviour data, they have a responsibility towards borrowers to correct discrepancies. The RBI’s action on the bureau is seen as an increased push for consumer protection and the sanctity of personal data.
The RBI’s rules for creditinformation companies require them to establish a procedure to disclose to the individual their credit record. “The credit bureaus in possession or control of the credit information shall make the correction or addition or otherwise and take appropriate steps to update the information within 15 days after being requested by a credit institution or specified user,” RBI rules say.
ICICI Prudential gets Rs 492 crore GST notice
ICICI Prudential Life Insurance said that it has received a show cause & demand notice from the directorate general of GST intelligence for Rs 492 crore. During the inquiry, ICICI Prudential had already deposited an amount of Rs 190 crore without accepting any liability. “The issue revolves around the industry-wide matter of input tax credit,” it said in an exchange filing. In recent months the GST department has been pursuing recovery of tax on certain payments made by life insurers to their distributors, which the tax authorities said were disguised commissions.
[The Times of India]
