As introduced within the ‘Statement on Developmental and Regulatory Policies’ issued as half of the Monetary Policy assertion dated August 5, 2022, the Reserve Bank, in train of the powers conferred by sub part (1) of Section 11 of the Credit Information Companies (Regulation) Act, 2005 (the Act), being glad that it’s obligatory within the public curiosity to take action, directs all Credit Information Companies (CICs) holding a Certificate of Registration underneath sub-part (2) of Section 5 of the Act, to nominate Internal Ombudsman (IO) on the apex of their inside grievance redress mechanism by April 1, 2023.
2. The Direction covers, inter-alia, the appointment/tenure, position and duties, procedural tips, and oversight mechanism for the IO. Under the mechanism, all complaints which can be partly or wholly rejected by CICs might be reviewed by the IO earlier than the ultimate determination of the CIC is conveyed to the complainant. The IO is not going to entertain any complaints immediately from the members of public.
3. The implementation of the IO mechanism might be monitored by the CIC’s inside audit system, aside from regulatory oversight by RBI.
Press Release: 2022-2023/1003