Back to Career News

RBI directs credit information companies to appoint internal ombudsman

October 07, 2022

RBI directs credit information companies to appoint internal ombudsman
The Reserve Bank of India (RBI) on Thursday introduced Internal Ombudsman mechanism for Credit Information Companies (CICs), directing them to appoint an internal ombudsman at the apex of their internal grievance redress mechanism by April 1, 2023. The implementation of the mechanism will be monitored by the CIC’s internal audit system, apart from regulatory oversight by RBI.

“The direction covers, inter-alia, 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 RBI said.

The internal ombudsman will not entertain any complaints directly from the members of public.

In its Statement of Developmental and Regulatory Policies, on August 5 this year, the central bank had called for bringing credit information companies under the internal ombudsman framework to strengthen and improve the efficiency of the internal grievance redressal mechanisms.

According to the RBI, the internal ombudsman shall be either a retired or a serving officer, not below the rank of deputy general manager or equivalent in any financial sector regulatory body, credit information companies, a non-banking financial company (NBFC) or bank, with necessary skills and experience of at least seven years in banking, non-banking finance, financial sector regulation or supervision, credit information, or consumer protection.

Important Links:

Recommended for you ...

Axis Bank and Mastercard Launch Premium Credit Card for Small Business Owners
Axis Bank and Mastercard Launch Premium Credit Card for Small Business Owners

September 26, 2024

Banks Report Over 15% Growth in New Credit Card Additions: RBI Data
Banks Report Over 15% Growth in New Credit Card Additions: RBI Data

September 26, 2024

National Company Law Tribunal (NCLT) Approves Merger of IDFC and IDFC First Bank
National Company Law Tribunal (NCLT) Approves Merger of IDFC and IDFC First Bank

September 25, 2024

Chat on WhatsApp