New RBI Guideline : The Reserve Bank of India (RBI) has recently issued an important rule regarding credit score and credit report. The purpose of this new rule is to protect the interests of customers and make financial institutions more accountable. Let us know about this new rule in detail.
The main purpose of the new rule
The main objective of this rule is to reduce the problems caused by wrong credit reports. It is often seen that banks update wrong information related to a person’s loan dues in the credit report. This spoils the person’s credit score and it takes months for him to get his report corrected.
RBI’s new rule
RBI has directed that if a credit institution (bank or NBFC) or a credit information company delays in correcting an incorrect credit report of an individual, it will have to compensate the customer.
Compensation process
1. Time for complaint redressal: Banks and financial institutions have to resolve customer complaints within 30 days.
2. Penalty: If the solution is not found in 30 days, then the concerned institution will have to pay a penalty of Rs 100 per day.
3. Responsibility to pay compensation: If the credit institution does not correct the wrong report and send it to the credit information company within 21 calendar days, then compensation will be given by the credit institution.
Alerts on credit report checks
RBI has also directed that when a bank or NBFC checks the credit report of an individual, the same should be informed by the credit information company and the credit institution through SMS and email.
Importance of the New Testament
1. Consumer Protection: This rule protects the interests of customers and saves them from the problems caused by incorrect credit reports.
2. Accountability of financial institutions: This rule makes banks and financial companies more vigilant and accountable.
3. Protection of credit score: It will help in reducing the problem of bad credit score due to incorrect information.
4. Transparency: Getting alerts on checking credit report will bring transparency in the process.
This new rule of RBI is an important step in the financial sector. It makes financial institutions more responsible while protecting the rights of customers. This will increase people’s trust in the credit system and reduce the problems caused by wrong credit reports.
Tips for customers
- Check your credit report regularly.
- If you find any mistake, contact the concerned institution immediately.
- Keep a record of the complaint and demand compensation after 30 days.
- Take precautions to keep your credit score better.
This new rule is not only beneficial for the customers but will also help in making the entire financial system more reliable and transparent.