The Reserve Bank of India (RBI) has fined all four credit bureaus for breaking the rules, including not maintaining accurate credit information. The RBI has imposed a total penalty of Rs 1 crore 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, according to the RBI’s press release.
Credit Companies Fined
Experian Credit Information Company of India has been fined Rs 24.75 lakh, TransUnion CIBIL has been fined Rs 26 lakh, Equifax Credit Information Services has been fined Rs 24.25 lakh, and CRIF High Mark Credit Information Services has been fined Rs 25.75 lakh.
The RBI stated that these penalties are due to regulatory compliance issues and do not question the validity of any transactions or agreements made by the companies.
Violations in Credit Report
During the inspection conducted by the RBI, it was discovered that certain companies had incomplete and incorrect credit information. Some companies also neglected to update borrowers’ credit information and provide them with necessary details about how to correct any mistakes.
As a result, the companies were sent a notice asking them to explain why they should not be penalized for not following the CIC (R) Act and CIC Rules. In April, the RBI announced that it would include all credit bureaus in the RBI Integrated Ombudsman Scheme.
This was done to penalize companies that delayed updating credit information and to prevent lenders from misusing customer data.