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RBI Reviews Credit Bureau Data Practices and Disputes

5 July 20251 min read
BANKING & FINANCERBI Reviews CreditBureau DataPractices andDisputes5 July 2025safalsetu.com

Why in the news

RBI began reviewing credit bureau practices after complaints about score mismatches and uneven data updates.

Key facts

  • Proposals: unified grievance portal, uniform Data Quality Index (DQI), single-window data submission.
  • RBI’s plan: time-bound central grievance handling, real-time or more frequent uploads (now fortnightly), common write-off and inactive-account rules, a unique borrower ID.
  • Under the Integrated Ombudsman Scheme (2021), borrowers get ₹100/day if a complaint exceeds 30 days.

Who gains

  • Borrowers: easier dispute resolution.
  • Lenders: cleaner data and better risk profiling.
  • CICs: must upgrade systems and cut turnaround time.

Exam angle

  • Four CICs and the DQI.
  • Compensation: ₹100/day after 30 days.

Test yourself

1. Under the RBI Integrated Ombudsman Scheme (2021), what daily compensation can a borrower claim if a CIC complaint stays unresolved beyond 30 days?

The notes state ₹100 per day compensation after 30 days.

2. Which proposal was among those suggested in RBI's credit bureau data review for borrower identification?

RBI called for a unique borrower ID to avoid mismatches and duplicate records.

3. How often were credit data submissions made to CICs before RBI pushed for real-time or more frequent updates?

Data submission was fortnightly; the move is toward real-time or more frequent updates.