Internal ombudsman deadline for CICs

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The Reserve Bank of India, in its monetary policy statement on 5 August 2022, directed all registered credit information companies (CICs) to appoint an internal ombudsman (IO) by 1 April 2023 for addressing grievances and resolving disputes related to the CICs.

The IO will review client complaints received against the CICs that have not been addressed, even after an internal review by the CIC. Direct complaints made by the public, however, will not be reviewed, the RBI said.

The central bank’s decision to integrate CICs in its ombudsman scheme is in line with giving parties who work with regulated businesses an alternative method to address grievances regarding them.

The CICs are to appoint the IO for a fixed term of not less than three years, but not more than five years. Both the CIC’s internal audit team and the RBI as regulator will monitor the IO mechanism to ensure its smooth functioning.