RBI introduces Internal Ombudsman mechanism for Credit Information Companies

The Reserve Bank of India (RBI) on October 6 introduced the Internal Ombudsman mechanism for Credit Information Companies (CICs).

The RBI, in the ‘Statement on Developmental and Regulatory Policies’, had said it was necessary for all Credit Information Companies (CICs) to appoint Internal Ombudsman (IO) at the apex of their internal grievance redress mechanism by April 1, 2023.

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 IO will not entertain any complaints directly from the members of the public.

The implementation of the IO mechanism will be monitored by the CIC’s internal audit system, apart from regulatory oversight by RBI, the central bank said.