The Reserve Bank of India (RBI) has imposed a monetary penalty of about ₹25 lakh each on the four credit information companies currently operating in the country for non-compliance with certain provisions of the Credit Information Companies/CICs (Regulation) Act, 2005, read with the CIC Rules, 2006.

The monetary penalty on TransUnion CIBIL is ₹26 lakh; CRIF High Mark Credit Information Services (₹25.75 lakh); Experian Credit Information Company of India (₹24.75 lakh); and Equifax Credit Information Services (₹24.25 lakh).

In the case of TransUnion CIBIL, CRIF High Mark Credit Information Services, and Equifax Credit Information Services, RBI said its statutory inspection of these companies with reference to their financial position as of March 31, 2021, and examination of the Inspection Report, supervisory letter, and all related correspondence pertaining to the same revealed that certain data relating to the credit information maintained by them was not accurate and complete.

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Further, on receipt of complaints from some borrowers, the companies had neither updated the credit information relating to them nor informed them regarding the steps taken by them for 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, per a RBI statement.

In the case of Experian Credit Information Company of India, RBI said its statutory inspection of the company with reference to its financial position as of March 31, 2021 and examination of the Inspection Report, supervisory letter, and all related correspondence pertaining to the same revealed that certain data relating to the credit information maintained by the company was not accurate and complete.

Consequently, a notice was issued to the aforementioned companies advising them to show cause as to why a penalty should not be imposed for their failure to comply with the provisions of the CIC (R) Act read with the CIC Rules, as stated therein, the central bank said.

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After considering replies by these companies to the notice, additional submissions made by them, and oral submissions made during the personal hearing, RBI came to the conclusion that the charge of non-compliance with the provisions of the CIC (R) Act and the CIC Rules were substantiated and warranted the imposition of a monetary penalty on them, per the statement.

In all four cases, RBI said its action is based on deficiencies in regulatory compliance and is not intended to pronounce upon the validity of any transaction or agreement entered into by them.

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