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RBI issues Master Direction on Credit Information Reporting.

Banking & Finance | Dated: 09 Jan 2025

On January 6, 2025, the Reserve Bank of India (RBI) released the 'Master Direction Reserve Bank of India (Credit Information Reporting) Directions, 2025'. This document brings together various guidelines for banks and financial institutions regarding the reporting of Customer Credit Information (CCI).

🎯 Key Highlights:

  • - The RBI issued these directions using its powers under Section 11 of the Credit Information Companies (CICs) (Regulation) Act, 2005.
  • - The aim of this Master Direction is to create a standardized system for reporting and sharing credit information. It also focuses on ensuring the confidentiality and security of sensitive credit data, while addressing other related concerns.
  • - Credit Information Companies (CICs) must notify customers via SMS or email whenever their Credit Information Report (CIR) is accessed by Specified Users (SUs). Notifications are sent only when the inquiry is reflected in the CIR.

💡 Other Important Facts:

  • (i) Credit Institutions (CIs), including banks and Non-Banking Financial Companies (NBFCs), are required to inform customers about the reasons for rejecting their requests for data correction to help them understand and address issues in their CIR.
  • (ii) Complainants are entitled to compensation of Rs. 100 per day if their complaint is not resolved within 30 calendar days of the initial filing with a CI or CIC.
  • (iii) The Reserve Bank of India (RBI) mandates all lenders to update credit bureau records every 15 days, effective January 1, 2025.

📚 Test Your Knowledge:

Which institution released the 'Master Direction Reserve Bank of India (Credit Information Reporting) Directions, 2025'?

Correct Answer: RBI

🚀 Quick Recap:

About RBI

  • Governor : Sanjay Malhotra
  • Headquarter : Mumbai