Share
The Reserve Bank of India (RBI) has directed all Credit Information Companies (CICs) holding a Certificate of Registration under the Credit Information Companies (Regulation) Act, 2005, to appoint an Internal Ombudsman (IO) at the apex of their internal grievance redress mechanism by April 1, 2023. This directive was issued in exercise of powers under Section 11(1) of the Act and follows the RBI’s commitment to strengthen consumer protection as announced in the Monetary Policy statement dated August 5, 2022.
The IO mechanism covers appointment procedures, tenure, roles and responsibilities, procedural guidelines, and an oversight framework. Under this system, complaints that are partly or wholly rejected by CICs will be reviewed by the IO before the final decision is communicated to the complainant. The IO will not accept complaints directly from the public.
The implementation and effectiveness of the IO mechanism will be monitored both by the CIC’s internal audit system and through regulatory oversight by the RBI, ensuring a robust grievance redressal framework.
[RBI]