What changed
RBI issued the Credit Information Companies-Internal Ombudsman Directions, 2022, requiring all CICs to appoint an Internal Ombudsman by April 1, 2023. This follows the August 5, 2022 policy announcement to bring CICs under the IO framework. The IO will serve as an independent apex authority within the CIC to review customer complaints before they are rejected.
What it means for you
CICs must now establish an internal ombudsman office to ensure fair complaint handling, reducing customer grievances escalating to external forums. For banks and lenders relying on CIC data, this enhances data accuracy and dispute resolution, potentially lowering operational risks. Compliance costs for CICs will increase, but the move aims to improve trust in the credit information ecosystem.
What you must do
- Ensure your CIC partners comply with the IO framework by April 1, 2023.
- Review your internal grievance redressal processes to align with CIC IO reviews.
- Train customer-facing teams on the new CIC complaint escalation path.
- Monitor CIC compliance reports for any impact on credit data disputes.
Who it affects
All Credit Information Companies (CICs), Banks and lenders using CIC data, Customers with credit report disputes
What is the deadline for CICs to appoint an Internal Ombudsman?
The RBI directions come into effect from April 1, 2023, so CICs must have the IO in place by that date.
Does this affect banks directly?
Banks are not directly required to appoint an IO under this circular, but they must ensure their CIC partners comply, as it impacts credit data dispute resolution.
What happens if a CIC fails to comply?
RBI may suspend the operation of these directions for a specific CIC or take other regulatory action as deemed necessary.