The Reserve Bank of India (RBI) has imposed a financial penalty of Rs 26 lakh on TransUnion CBIL Ltd for not complying with certain provisions of the act and rules governing credit information companies.
A statutory inspection of the company was conducted by RBI with reference to its financial position as on March 31, 2021, and an examination of inspection reports, letters of supervision and all correspondence related thereto revealed that certain data relating to credit information maintained by the company was not accurate and complete, RBI said.
“After receiving complaints from some borrowers, the company did not update the credit information related to them or inform them about the steps taken to correct the discrepancy and the reasons for its inability to comply with the deadline for providing correct information, within 30 days of receipt of such complaints,” the central bank said.
Consequently, a notice was issued to the company as it was advised to show cause why a penalty should not be imposed for failure to comply with the provisions of the CIC (R) Act read with the CIC Rules, it said, RBI said.
After considering the company’s reply to the notice, the additional submissions made by it and the oral submissions made during the personal hearing, the RBI came to the conclusion that there were allegations of non-compliance with the provisions of the CIC(R) Act and the CIC Rules. The imposition of monetary penalty on the company is substantiated and warranted, it said.
“This action is based on a lack of regulatory compliance and is not intended to assert the validity of any transaction or agreement entered into by the company,” the RBI said.
Meanwhile, rbi has also imposed a financial penalty of Rs 24.75 lakh on Experian Credit Information Company of India Private Limited for non-compliance with the specific provisions of the Rules. “The statutory inspection of the company revealed that some of the information relating to the credit information maintained by the company was not accurate and complete.”
