Banks must resolve complaints in 30 days or pay fine

The Reserve bank of India (RBI) on Thursday told lenders, financial institutions and credit bureaus to resolve complaints filed by customers within 30 days or pay a fine of ₹100 per day.

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The RBI also directed credit institutions (CIs) and credit information companies (CICs) to introduce a compensation framework for delayed updation or rectification of credit information.

“A CIC shall pay compensation to the complainant if the CIC has failed to resolve the complaint within 30 calendar days of being informed by the complainant or a CI, despite the CI having furnished the updated credit information to the CIC within 21 calendar days of being informed by the complainant or the CIC," the RBI said. The central bank has directed CICs and CIs to put in place processes and to implement the compensation framework in the next six months.