What changed
RBI issued a circular on June 24, 2009, reinforcing the legal obligation under Section 21 of the Credit Information Companies (Regulation) Act, 2005, for banks to furnish credit reports to customers. It also reminded banks of the maximum fee of Rs. 50 prescribed in Regulation 12(3) of the Credit Information Companies Regulations, 2006.
What it means for you
Banks must now strictly comply with customer requests for their own credit reports, addressing complaints under the RTI Act. Non-compliance could invite regulatory action, and the Rs. 50 fee cap ensures affordability for customers.
What you must do
- Ensure your bank has a process to accept and process customer requests for credit reports within the legal framework.
- Cap the fee for providing credit reports at Rs. 50 as per RBI regulations.
- Train staff on the provisions of the Credit Information Companies (Regulation) Act, 2005, to avoid compliance gaps.
- Acknowledge receipt of this circular to confirm understanding and adherence.
Who it affects
All Scheduled Commercial Banks (excluding RRBs and LABs), Notified All-India Financial Institutions
What is the maximum fee a bank can charge for providing a credit report?
The maximum fee is Rs. 50, as specified in Regulation 12(3) of the Credit Information Companies Regulations, 2006.
Which law mandates banks to provide credit reports to customers?
Section 21 of the Credit Information Companies (Regulation) Act, 2005, requires credit institutions to furnish a copy of credit information upon request.