The Credit Information Companies (Regulation) Act, 2005
Aim: Remedies available to an aggrieved person whose 'cibil' has been spoiled or corrupted by 'Credit Information Companies (CIC)' / Actions that can be taken over CIC generation false information or credit score.

Credit Information Companies (CIC)
According to Sec 2(e) of Credit Information Companies (Regulation) Act, 2005 a ,"credit information company" means a company formed and registered under the Companies Act, 1956 (1 of 1956) and which has been granted a certificate of registration under sub-section (2) of section 5 of this act.

Acc. to sec 14, Functions of a credit information company are:

1. A credit information company may engage in any one or more of the following forms of business, namely:
   1. to collect, process and collate information on trade, credit and financial standing of the borrowers of the credit institution which is a member of the credit information company;
   2. to provide credit information to its specified users or to the specified users of any other credit information company or to any other credit information company being its member;
   3. to provide credit scoring to its specified users or specified users of any other credit information company or to other credit information companies being its members;
   4. to undertake research project;
   5. to undertake any other form of business which the Reserve Bank may, specify by regulations as a form of business in which it is lawful for a credit information company to engage.
       
2. No credit information company shall engage in any form of business other than those referred to in sub-section (1).
    
3. Any credit information company for the purposes of carrying on the business of credit information may:
   1. register credit institutions and other credit information companies, at their option as its member, subject to such terms and conditions as may be pre-determined and disclosed by such credit information company;
   2. charge such reasonable amount of fees, as it may deem appropriate not exceeding the maximum fee, as may be specified under section 27, for furnishing credit information to a specified user;
   3. generally to do all such other acts and perform such other functions as are necessary to facilitate proper conduct of its affairs, business and functions in accordance with the provisions of this Act.

  Issue: Now as we can acknowledge that acc. To sec 14 subclause (b) & (c) one of the main duties of a CIC is to provide credit information of its client to other credit institutions or financial corporations. This credit info. also contains the 'credit score ( the credit worthiness and capacity of a borrower to repay his loan and advances and discharge his other obligations in respect of credit facility availed or to be availed by him)' or 'Cibil score', which is most of the time improperly or default fully maintained by the CIC.

Problem:This low maintenance of cibil score can potentially cause significant problems to a common man , such as:

1. Loan and/or Credit Card Approval: If you have a low credit score, lenders may turn down your application since a low/poor credit score is a mark of low creditworthiness. Any default or delay in the loan repayments gets recorded in the credit report of the applicant, which gets tracked by lending companies before any loan/credit card approval. On checking a credit report with a low credit score, lenders can get apprehensive in granting a loan or credit card to such applicants.
    
2. Higher Loan Rates – Lower Benefits: A low credit score will most likely impact your credit application in a way that it will either get rejected or be approved at higher interest rates. Maybe a low credit score won't affect you immediately, but it might create a problem for you in the future. Therefore, keep checking your credit score on a monthly basis or once a quarter.
    
3. Lower Credit Score- No Pre Approved Offers: Even if you have an existing relationship with the bank, you may not get any pre-approved loan offers because of your low credit score. For example, you are a salaried individual with a good salary, yet you will not get any pre-approved loan or credit card offers due to the same reason of low credit score.
Now in such a situation, following claims can be made by the aggrieved person:
1. Sec 21 (3): If a credit information company or specified user or credit institution in possession or control of the credit information, has not updated the information maintained by it, a borrower or client may request all or any of them to update the information; whether by making an appropriate correction, or addition or otherwise, and on such request the credit information company or the specified user or the credit institution, as the case may be, shall take appropriate steps to update the credit information within thirty days after being requested to do so.
   
   Explanation: If upon non-updation of the credit information, the client can request the particular firm to do the needful and upon this request the firm has to update his/her information within 30 days.
    
2. Sec 19: A credit information company or credit institution or specified user, as the case may be, in possession or control of credit information, shall take such steps (including security safeguards) as may be prescribed, to ensure that the data relating to the credit information maintained by them is accurate, complete, duly protected against any loss or unauthorized access or use or unauthorized disclosure thereof.
   
   EXPLANATION: It is the duty of the credit company holding credit information to ensure that the information maintained by them is accurate, complete, duly protected against any loss or unauthorized access.
Possible Actions That Can Be Taken Over Such Credit Information Companies Is Mentioned In Chapter Vii Which Are:
1. Offences and penalties: (1) Whoever, in any return or other document or in any information required or furnished by, or under, or for the purposes of, any provision of this Act, wilfully makes a statement which is false in any material particular, knowing it to be false, or wilfully omits to make a material statement, shall be punishable with imprisonment for a term which may extend to one year and shall also be liable to fine.
   
   Explanation: Any CIC which knowingly circulates false information shall be liable to imprisonment up to one year and shall also be liable to fine.
    
2. Any person who contravenes any provision of this Act or of any rule or order made thereunder, or obstructs the lawful exercise of any power conferred by or under this Act, or makes default in complying with any requirement of this Act or of any rule or order made or direction issued thereunder, shall, if no specific provision is made under this Act for punishment of such contravention, obstruction or default, be punishable with fine which may extend to one lakh rupees and where a contravention or default is a continuing one, with a further fine which may extend to five thousand rupees for every day during which the contravention or default continues.
   
   Explanation: Any firm which makes a mistake in not complying with any provision or rule of this act, if no specific provision is made under this Act for punishment of such contravention, will be punishable with fine which may extend to one lakh rupees and where a contravention or default is a continuing one, with a further fine which may extend to five thousand rupees for every day during which the contravention or default continues.
    
3. Where a contravention or default has been committed by a credit information company or credit institution or specified user, as the case may be, every person who, at the time the contravention or default was committed, was in charge of, and was responsible to the credit information company or credit institution or specified user for the conduct of its business, shall be deemed to be guilty of the contravention or default and shall be liable to be proceeded against and punished accordingly.

Explanation: Any firm which makes a default in the conduct of its business towards a client, will be held guilty of such of the contravention or default and shall be liable to be proceeded against and punished accordingly.
• As quoted before, Sec 19 mandates the firm to maintain the accurate information of its client and Sec 21(3) empowers the client that if its data is not updated, the client can request the company to do so and the company is required to make corrections within 30 days.
• But, the problem is that no remedy is specifically mentioned in the case if the company doesn't pay heed to such a request, therefore the client can take action upon the firm under this section.
• Further, the act also provides:
  • Sec 25(3), where the contravention is of the nature referred to in sub-section (4) of section 23, a penalty not exceeding one lakh rupees and where such contravention or default is continuing one, a further penalty which may extend to five thousand rupees for every day, after the first, during which the contravention or default continues.
Explanation: Sec 25(3) empowers the RBI to impose a penalty extending to 5000 Rs for every day, after the first, during which the contravention , if the default is of the nature referred to in sub-section (4) Sec 23.

Grievance Filing Mechanism:
Reserve Bank of India (RBI) integrated its three erstwhile Ombudsman Schemes viz. (i) the Banking Ombudsman Scheme, 2006, (ii) the Ombudsman Scheme for Non-Banking Financial Companies, 2018, and (iii) the Ombudsman Scheme for Digital Transactions, 2019, into one Scheme - 'The Reserve Bank - Integrated Ombudsman Scheme, 2021 (the Scheme / RB-IOS, 2021)' with effect from November 12, 2021.

The Scheme simplifies the grievance redress process at RBI by enabling the customers of Regulated Entities (REs) like banks, Non-Banking Financial Companies (NBFCs), Payment System Participants (PSPs) and Credit Information Companies to register their complaints at one centralised reference point. The objective of the Scheme is to resolve the customer grievances involving 'deficiency in service' on part of REs in a speedy, cost-effective and satisfactory manner.

Advantages/ benefits of the RB-IOS, 2021 / AGR Framework?
RB-IOS, 2021 has simplified the processes, centralized the receipt of physical and email complaints, brought more REs under its ambit, done away with limited grounds of complaints and difference jurisdictions of Ombudsmen and now all complaints involving deficiency in service are covered under RB-IOS. Complainants can lodge their complaints against an RE on the 24x7 online CMS portal at https://cms.rbi.org.in/ or send their complaint in email/physical form to CRPC.

Salient benefits for the complainant arising from the RB-IOS with upgraded CMS portal are as under:
1. Simplification in the process of filing the complaint on CMS portal;
2. A complaint can be filed on CMS portal/ CRPC from anywhere in the country irrespective of the address of the complainant, RE or branch involved;
3. One address and one email for lodging of physical/ email complaints from anywhere in the country;
4. Automatic acknowledgement to the complainant on registration of online complaint;
5. Facility for real-time tracking of the status of complaint;
6. Convenience from 'One Nation One Ombudsman' approach;
7. Facility for online submission of additional documents on the CMS itself;
8. Detailed letter intimating decision/ closure of complaint;
9. Facility for online and voluntary feedback submission by the complainant regarding redress provided by RBI.
Centralised Receipt and Processing Centre (CRPC) has been set up at RBI, Chandigarh for receiving complaints through physical mode (letter/post). The CRPC undertakes initial scrutiny and processing of these complaints, uploads them on CMS, which are then assigned to Offices of RBI Ombudsmen (ORBIOs) or CEPCs for redressal.
1. What is the Contact Center of RBI and how can it be accessed by complainants? The Contact Center of RBI is a platform where a complainant can reach out to RBI to get information related to the AGR mechanism of RBI, the procedure of or help in filing complaints, and to ascertain the status of the complaint lodged with RBI. The contact center with Interactive Voice Response System (IVRS) with Toll Free #14448 is available 24x7, while the facility to connect to Contact Centre personnel is available from 8:00 AM to 10:00 PM (weekdays except National Holidays) for English and Hindi, and in ten Regional Languages (Assamese, Bengali, Gujarati, Kannada, Marathi, Malayalam, Odia, Punjabi, Telugu, and Tamil) from 9:30 AM to 5:15 PM.
    
2. Can the complaints with the RBI Ombudsmen under RB-IOS, 2021 be filed through Contact Center? No, complaints cannot be filed through Contact Center, but the Contact Centre can assist the complainant in filing the complaint through CMS portal or physical mode. It will also provide clarifications about/details of the AGR mechanism set up by RBI.
    
3. Where are the Ombudsmen located? Will I be required to approach any specific Ombudsman office for filing a complaint? Presently, Offices of RBI Ombudsmen (ORBIOs) are functioning from 22 locations across India. However, the complainants need not contact/approach any specified ORBIO for filing a complaint under the RB-IOS, 2021. The complaints lodged directly online through CMS Portal (https://cms.rbi.org.in) are automatically allocated to different RBI Ombudsmen for redressal upon registration of the complaint. Physical and email complaints are processed and entered in CMS for further processing, after seeking further information/details, if missing, from the complainant.
    
4. Which REs are covered under the RB-IOS, 2021? The following REs of RBI are covered under the RB-IOS, 2021:
   • Banks: All commercial banks, including Public Sector Banks, Private Sector Banks, Foreign Banks, Local Area Banks, Small Finance Banks, Payment Banks, Regional Rural Banks, Scheduled Primary (Urban) Co-operative Banks, and Non-scheduled Primary (Urban) Co-operative Banks with a deposit size of ₹50 Crore and above, as on the date of the audited balance sheet of the previous financial year;
   • NBFCs registered with RBI: All Non-Banking Financial Companies (excluding Housing Finance Companies) which (a) are authorized to accept deposits; or (b) have customer interface, with an assets size of ₹100 crore and above as on the date of the audited balance sheet of the previous financial year;
     Note: Core Investment Companies, Infrastructure Debt Fund-Non-banking Financial Companies, Non-Banking Financial Companies-Infrastructure Finance Companies, companies in resolution or winding up/liquidation, or any other NBFC specified by RBI are excluded from the ambit of the RB-IOS, 2021.
   • System Participants: All Payment System Participants - banks as well as non-banks regulated by RBI are covered under the RB-IOS, 2021. These entities issue Prepaid Payment Instruments (PPIs) and facilitate transactions over National Electronic Funds Transfer (NEFT) / Real Time Gross Settlement (RTGS) / Immediate Payment Service (IMPS) / Unified Payments Interface (UPI) / Bharat Bill Payment System (BBPS) / Bharat QR Code / *99# mobile transaction service using Unstructured Supplementary Service Data (USSD) / Aadhaar Enabled Payment System (AePS), etc.
   • Credit Information Companies: All Credit Information Companies as defined in the Companies Act, 2013 (18 of 2013) and granted a Certificate of Registration under sub-section (2) of section 5 of the Credit Information Companies (Regulation) Act, 2005 (30 of 2005).
   The list of entities, periodically updated, covered under the RB-IOS, 2021 is available at https://cms.rbi.org.in/cms/assets/Documents/RBIO_English_Portal.pdf.
    
5. What happens to the complaint if the grievance is against an entity regulated by RBI but not covered under the RB-IOS, 2021? The complaints pertaining to the REs not covered under the RB-IOS, 2021 are forwarded to CEPCs of RBI (currently located at 30 RBI Offices) for resolution. Such complaints can also be filed on the portal or address. The complainant would be notified of the same through SMS and e-mail on the mobile number and email id provided at the time of filing the complaint.
What are the grounds of complaints under the RB-IOS, 2021?
All complaints involving 'deficiency in service' on the part of the RE, except for those listed under Question 14 below are handled under the RB-IOS, 2021. 'Deficiency in service' has been defined in RB-IOS, 2021 as 'any shortcoming or inadequacy in any financial service, which the Regulated Entity of RBI is required to provide statutorily or otherwise, which may or may not result in financial loss or damage to the customer'.

What types of complaints are not covered under the RB-IOS, 2021?
Certain types of complaints which are classified as non-maintainable complaints due to various reasons as indicated below are not covered under RB-IOS, 2021:

• Complaints which are filed directly with the Ombudsman without first being taken up with the RE concerned, in writing.
• Complaints which have been lodged with the RE, but a period of 30 days has not elapsed from such date of lodgment of the complaint with the RE, except for complaints for which the complainant has received a reply from the RE, and is not satisfied with the reply.
• Complaint made after one year from the date of receipt of the reply of the RE or, where no reply is received, later than one year and 30 days after the date of the representation to the RE.
• Complaints which have been already dealt with by Ombudsman/CEPC or those under process/pending on the same cause of action and for similar relief (whether received from the same complainant or along with one or more complainants) with the RBIO.
• Complaints related to the commercial decision of the RE. For example: grant of a loan.
• Complaints related to any dispute between a vendor and a RE.
• Complaints addressed to other authorities and not directly addressed to Ombudsman.
• Complaints raising general grievances against the management or executives of RE.
• Complaints pertaining to a dispute in which action initiated by a RE is in compliance of the orders of a statutory or law enforcing authority.
• Complaints in which the alleged deficiency in the service relates to an entity not regulated by RBI.
• Complaints related to the disputes between REs.
• Complaints related to any dispute involving employee-employer relationship of RE.
• Complaints pending before any Court, Tribunal or Arbitrator or any other forum or authority; or, settled or dealt with on merits, by any Court, Tribunal or Arbitrator or any other forum or authority, whether or not received from the same complainant or along with one or more of the complainants/parties concerned.
• Complaints that are abusive or frivolous or vexatious in nature.
• Complaints made after the expiry of the period of limitation prescribed under the Limitation Act, 1963, for such claims.
• Complaints with incomplete details and those that are not specific/actionable in nature.
• Complaints lodged through an advocate (except where the advocate himself is the aggrieved person).
• Complaint in the nature of offering suggestions or seeking guidance or explanation.

When can one file a complaint before the RBI Ombudsman?

For redress of his grievance, the complainant must first approach the concerned RE. If the RE does not respond within a period of 30 days after lodgment of the complaint or rejects the complaint wholly/partly or if the complainant is not satisfied with the response/resolution given by the RE, the complainant can lodge his complaint under the RB-IOS, 2021. Approaching the RBI Ombudsman without first lodging a complaint with the RE or doing so before 30 days after lodging the complaint, if there is no response from the RE, would make the complaint non-maintainable under RB-IOS, 2021. It may be noted that the complaint should be made to the RBI Ombudsman not later than one year after receiving the reply of the RE or, in cases where no reply is received, not later than one year and 30 days after the date of the representation to the RE.

What is the procedure for filing the complaint before the RBI Ombudsman?

A complaint can be filed through any of the following methods:
1. Online - on CMS portal of RBI at https://cms.rbi.org.in.
2. Physical complaint (letter/post) in the form as specified in Annexure 'A' in the Scheme to "Centralised Receipt and Processing Centre, 4th Floor, Reserve Bank of India, Sector -17, Central Vista, Chandigarh - 160017".
3. Complaints with full details can be sent by email ([email protected]).

What are the minimum details required to file a complaint with the RBI Ombudsman?

The complainant is required to provide the following details:
1. Name of the complainant, age and gender.
2. Full postal address of the complainant with personal e-mail ID, mobile number (mandatory to receive notifications), and landline number (if available).
3. Name and address of the branch or office of the RE against which the complaint is filed.
4. Complete facts giving rise to the complaint, including, transaction date and details, the details of the complainant's account number, debit card or credit card number to the extent that they are relevant to the subject matter of the complaint.
5. Date and details of the representation submitted to the RE for redressal of grievance and reply, if any, received from the RE.
6. The nature and extent of the loss caused to the complainant.
7. The relief sought.
8. Declaration that the complaint is not non-maintainable as per Clause 10 of the RB-IOS 2021.
Note: The complainant shall submit, along with the complaint, copies of the relevant documents supporting the complaint.

Can the complainant track the status of his complaint lodged under RB-IOS, 2021?

After a complaint gets successfully registered, it is assigned a complaint number. An acknowledgement indicating this complaint number is sent to the complainant through SMS on the mobile number and through e-mail at the email id provided at the time of filing the complaint. The status of the complaint can be checked by using the mobile number and the complaint number (received on the mobile) through the following link: https://cms.rbi.org.in. The status of the complaint can also be ascertained by the complainant from the Contact Centre at CRPC, Chandigarh by contacting the toll-free number 14448.

Can a complaint be filed before the RBI Ombudsman through a representative?

Yes. A complaint can be filed through an authorized representative of the complainant (other than through an advocate). Such complaints should be submitted along with an authorization in the Form prescribed in the Scheme {containing details of the representative, i.e. Name, address, mobile number (mandatory to receive notifications) and e-mail}.

Is there any charge or fee to be paid for filing a complaint with the RBI Ombudsman?

No. There is no charge or fee for a customer of the RE for filing or for resolving complaints under the RB-IOS, 2021. Further, complainants need not approach any third-party agency to file a complaint with RBI Ombudsman or pay any fee. Complainants can register their complaints by themselves or through a representative through any of the modes mentioned in Question 16 absolutely free of cost.

Is there any monetary limit on the amount involved in the complaint or compensation that the RBI Ombudsman can sanction?

There is no limit on the amount of disputed transaction for which the complaint/grievance can be raised under RB-IOS, 2021 and on which the RBI Ombudsman can provide resolution. However, only those complaints where the compensation sought, if any, for any loss suffered by the complainant arising directly out of the act or omission or commission of the RE, is ₹20 lakh or lower are admissible under RB-IOS. In addition, the Ombudsman can also provide compensation upto ₹1 lakh for mental agony/harassment etc., suffered by the complainant.

What happens if the complaint is not settled by agreement?

If the Ombudsman is satisfied that there is deficiency of service on the part of the RE and the complaint is not settled by agreement within a specified period as allowed by the Ombudsman, the RBI Ombudsman may pass an Award, if applicable. Before passing an Award, the Ombudsman provides a reasonable opportunity to the complainant and the RE to present their case. The complainant may accept the Award in full and final settlement or reject it. However, if he wishes to accept the Award, it is mandatory that the complainant submits his letter of acceptance to the RE concerned within 30 days, failing which, the Award will lapse.

What if the RE does not comply with the decision of the RBI Ombudsman, or there is delay in compliance?

In case the RE does not comply with the decision of the RBI Ombudsman within a reasonable time as may be decided by the RBI Ombudsman, the Ombudsman can pass an Award, if there are obvious deficiencies in service. An Award has to be complied with by the RE, unless appealed, within 30 days of the complainant accepting the Award.

What if there are different decisions in similar cases?

Cases that look similar prima-facie may vary in terms of facts and circumstances. However, to bring greater consistency in decisions, deliberations among Ombudsmen are held regularly.

• What if there are different decisions in similar cases?
• Is there any further recourse available in case of unsatisfactory decision by the RBI Ombudsman? Yes, the RB-IOS, 2021 provides for an appellate mechanism for the complainant as well as the RE for complaints closed under appealable Clauses of the Scheme. Any person aggrieved by an Award (except the RE in respect of Awards issued for non-furnishing of appropriate and satisfactory information within the stipulated time) or rejection of a complaint under an appealable clause, i.e. Sub-clauses (c) to (f) of Clause 16(2) of the Scheme, can file an appeal before the Appellate Authority in RBI, within 30 days of the date of receipt of communication of the Award (or acceptance of the award by the complainant in case of RE) or rejection of the complaint. The powers of Appellate Authority are vested with the Executive Director-in-charge of Department of RBI implementing the Scheme. The address of the Appellate Authority is:
  The Appellate Authority
  Reserve Bank - Integrated Ombudsman Scheme, 2021
  Consumer Education and Protection Department
  Reserve Bank of India
  First Floor, Amar Building, Fort, Mumbai 400 001.
  An appeal can be filed through the CMS Portal (https://cms.rbi.org.in) for a closed complaint. Alternatively, the appeal can also be sent via e-mail at [email protected]. Further, if the complainant is not satisfied with the resolution provided by the Ombudsman, he/she is at liberty to explore other recourses and/or remedies available, as per law.
   
• Can I withdraw my complaint at any stage? Yes. A complaint can be withdrawn at any stage by the complainant under the Scheme. For withdrawing a complaint, one can log on to the Complaint Management System portal (https://cms.rbi.org.in) and go to the tab "Track a complaint".
   
• Where can the full document/ Scheme of RB-IOS be found? The Scheme is available at the following link: https://rbidocs.rbi.org.in/rdocs/content/pdfs/RBIOS2021_amendments05082022.pdf.
   
• Can a complainant provide feedback on the complaint closed by the RBI Ombudsman? Yes. Complainants can log on to RBI's CMS portal (https://cms.rbi.org.in) and can share their feedback under the tab "Feedback". This feedback is analyzed at RBI for further improving the grievance redress under RB-IOS, 2021.
   
• In what languages can a complaint be filed under RB-IOS, 2021? The online portal (https://cms.rbi.org.in) enables filing of complaint in two languages i.e. Hindi and English. However, facts/description of the complaint can be typed, copied and pasted in a description box, in any language for up to 2,000 characters. However, the physical and email complaints can be filed in any language.
   
• For Further Clarity Refer To Link Provided:
  The Reserve Bank - Integrated Ombudsman Scheme, 2021: https://www.rbi.org.in/commonperson/english/scripts/FAQs.aspx?Id=3407

Award Winning Article Is Written By: Ms.Vani Jindal

Authentication No: AG458309355820-4-0824