RBI introduces Internal Ombudsman mechanism for Credit Information Companies (CICs)

Oct 06, 2022 | by TeamLease RegTech Legal Research Team

Loading audio.....

Secretarial ComplianceThe Reserve Bank of India (RBI) on October 06, 2022, introduced the Internal Ombudsman mechanism for Credit Information Companies (CICs). It is directed to all the Credit Information Companies (CICs) holding a Certificate of Registration under sub-section (2) of Section 5 of the Credit Information Companies (Regulation) Act, 2005, to appoint an Internal Ombudsman (IO) at the apex of their internal grievance redress mechanism by April 1, 2023. 

The above direction was announced in the ‘Statement on Developmental and Regulatory Policies’ issued as part of the Monetary Policy statement dated August 05, 2022.

This covers, the appointment/tenure, role and responsibilities, procedural guidelines, and oversight mechanism for the IO. Under the mechanism, all complaints that are partly or wholly rejected by CICs will be reviewed by the IO before the final decision of the CIC is conveyed to the complainant. The IO will not entertain any complaints directly from the members of the public. The implementation of the IO mechanism will be monitored by the CIC’s internal audit system, apart from regulatory oversight by RBI.

[Press Release: 2022-2023/1003]


Related Updates

Alternate Text

Get updates on the go on RuleZbook Mobile App.