Credit information companies (CICs) will have to pay a compensation of Rs 100 per day to customers for delays in updation or rectification of their credit information, the Reserve Bank said on Thursday.
Credit institutions (CIs) and CICs have been given six months to put in place the necessary systems and processes to implement the ‘Framework for compensation to customers for delayed updation/rectification of credit information’. In a circular, the Reserve Bank directed CICs and CIs to implement the compensation framework for delayed updation/rectification of credit information.
“Complainants shall be entitled to a compensation of `100 per calendar day in case their complaint is not resolved within a period of thirty (30) calendar days from the date of the initial filing of the complaint by the complainant with a CI/ CIC,” it said. The circular further said the complainant can approach the RBI Ombudsman in case of wrongful denial of compensation by CIs or CICs. With the increase in customer complaints regarding credit information reporting and the functioning of CICs, the RBI has decided to put in place a comprehensive framework for strengthening and improving the efficacy of the grievance redress mechanism and customer service provided by CIs and CICs.
Allow premature withdrawal on term deposits of up to Rs 1 crore: RBI to banks
The Reserve Bank on Thursday said banks will have to offer premature withdrawal facility on all term deposits of up to `1 crore, raising the limit from Rs 15 lakh currently.
Banks have been permitted to offer domestic term deposits (TDs) without premature withdrawal option, provided that all TDs accepted from individuals for an amount of `15 lakh and below should have premature withdrawal facility.
“On a review, it has been decided that the minimum amount for offering non-callable TDs may be increased from Rs 15 lakh to Rs 1 crore” meaning all domestic term deposits accepted from individuals for amount of Rs 1 crore and below should have premature-withdrawal-facility, the Reserve Bank said in a circular.
Further, as per the extant norms, banks have also been permitted to offer differential rate on interest on TDs based on non-callability of deposits (non-availability of premature withdrawal option) in addition to tenor and size of deposits.
Differential interest rate are offered only on bulk deposits.