Swaminathan flags RBI’s concerns on CICs, asks them to focus on 6 key areas

Reserve Bank of India (RBI) Deputy Governor Swaminathan J on Tuesday flagged the central bank’s concern on Credit Information Companies (CICs) which provide credit scores to individuals for availing loans and asked them to focus on six key areas to improve their services.

Reserve Bank of India (RBI) Deputy Governor Swaminathan J on Tuesday flagged the central bank’s concern on Credit Information Companies (CICs) which provide credit scores to individuals for availing loans and asked them to focus on six key areas to improve their services.

During his meeting with the Managing Director & Chief Executive Officers of all the CICs, Mr. Swaminathan pointed out that, of late, there was a rise in customer complaints related to credit information and some concerns had emerged during Reserve Bank’s supervisory assessment, according to a statement issued by the RBI.

He asked the CICs to focus on six key areas, namely--need to improve the data quality; timely redressal of customer complaints; strengthening of internal ombudsman framework; streamlining the process for handling data correction requests; strengthening of cybersecurity and data privacy through robust information security governance framework; and concerns arising out of usage of data for consulting and analytics.

The CICs shared their feedback and highlighted the initiatives that were being taken in collaborating with the credit institutions (CIs) for enhancing data quality.