The Reserve Bank of India (RBI) has imposed monetary penalties on four credit bureaus for non-compliance with Credit Information Companies (Regulation) Act, 2005 read with the Credit Information Companies Rules, 2006.

The central bank has imposed a monetary penalty of Rs 26 lakh on TransUnion CIBIL Limited. A penalty of Rs 24.25 lakh has been imposed on Equifax Credit Information Services Private Limited.

Similarly, Experian Credit Information Company of India Private Limited and CRIF High Mark Credit Information Services Private Limited have been fined Rs 24.25 lakh and Rs 25.75 lakh respectively.

“This action is based on the deficiencies in regulatory compliance and is not intended to pronounce upon the validity of any transaction or agreement entered into by the company,” RBI said in a press release dated June 26.

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During the statutory inspection of these companies, the RBI found that certain data relating to the credit information maintained by the four credit bureaus were not accurate and complete.

Also, on receipt of complaints from some borrowers, the bureaus had neither updated the credit information relating to them nor informed them regarding the steps taken for the correction of discrepancies and also the reasons for their inability to comply with the timeframe for providing correct information, within 30 days of receipt of such complaints.

The RBI on Monday (June 26) released four press releases sharing details of the decision to impose monetary penalties on these credit bureaus. All these bureaus were found to be guilty of non-compliance with the Credit Information Companies (Regulation) Act, 2005 read with the Credit Information Companies Rules, 2006.

“After considering the company’s reply to the notice, additional submissions made by it and oral submissions made during the personal hearing, RBI came to the conclusion that the charge of non-compliance with the provisions of CIC (R) Act and the CIC Rules were substantiated and warranted imposition of monetary penalty on the company,” the RBI said in all press releases.

Disclaimer: The above content is based on press releases issued by the RBI. The facts and monetary penalties mentioned above are based on the information shared by the RBI.