The Reserve Bank of India (RBI) has imposed a fine of ₹2,00,000 on Experian Credit Information Company of India Private Limited for failing to comply with certain rules under the Credit Information Companies (Regulation) Act, 2005 (CIC Act) and the Credit Information Companies Rules, 2006 (CIC Rules). The penalty was issued through an order dated March 03, 2025, under RBI’s authority as per Section 25(1)(iii) read with Section 23(4) of the CIC Act.
Reason for the Penalty
RBI conducted an inspection of Experian’s financial records as of March 31, 2023, and found that the company failed to comply with key provisions of the CIC Act and CIC Rules. Following this, RBI issued a show-cause notice asking why a penalty should not be imposed. After reviewing Experian’s response and oral submissions, RBI found the company guilty of the following violations:
- Delay in informing credit institutions about discrepancies – Experian did not notify financial institutions about discrepancies in credit information within seven days of receiving such requests.
- Failure to update or correct credit information – The company did not update or rectify incorrect credit details within the legally required timeframe of 30 days and failed to inform borrowers when updates could not be made.
RBI’s Action and Clarification
RBI clarified that the penalty is based on non-compliance with regulatory requirements and does not affect the validity of any transactions or agreements entered into by Experian. Additionally, this penalty does not prevent RBI from taking further action against the company if necessary.
