Recorded RBI impact
Fine: Rs 26.0 L
Monetary penalty · Fresh imposition
Published by RBI
26 Jun 2023
Case Brief
RBI imposed a monetary penalty on TransUnion CIBIL Limited, Mumbai by order dated June 26, 2023. The penalty was for non-compliance with provisions of the Credit Information Companies (Regulation) Act, 2005 and the Credit Information Companies Rules, 2006. After a statutory inspection, RBI found that some credit information maintained by the company was not accurate and complete, and that borrower complaints regarding discrepancies were not handled in the prescribed manner and timeframe. RBI issued a show-cause notice, considered the company’s submissions and oral hearing, and then concluded that the contraventions were substantiated, warranting a penalty under the CIC (R) Act.
Why RBI Acted
Following a statutory inspection with reference to its financial position as on March 31, 2021, RBI found that certain credit information maintained by TransUnion CIBIL Limited was not accurate and complete. RBI also found that, on receipt of complaints from borrowers, the company neither updated the credit information nor informed complainants about the corrective steps taken or the reasons for inability to meet the 30-day timeframe for providing correct information. After a show-cause notice, reply, additional submissions and oral hearing, RBI concluded that the non-compliance under the CIC (R) Act read with the CIC Rules was substantiated and imposed a monetary penalty under section 25(1)(iii) read with section 23(4) of the Act.
Operating Impact
The company must absorb the ₹26 lakh penalty; the order does not void transactions or directly restrict operations. However, it underscores ongoing compliance obligations around accuracy of credit information, timely corrections, and communication to borrowers when discrepancies are raised.
Regulatory Basis
- clause (iii) of sub-section (1) of section 25 read with sub-section (4) of section 23 of CIC (R) Act
- Credit Information Companies (Regulation) Act, 2005
- Credit Information Companies Rules, 2006
Action Facts
- Primary Impact
- Fine: Rs 26.0 L
- Order Date
- 26 Jun 2023
- Effective From
- 26 Jun 2023
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- Credit bureau