Q103: In the event of a cancellation of a Credit Institution's (CI) Certificate of Registration (CoR) or licence, what action are Credit Information Companies (CICs) required to take?

Immediately delete all records of the CI's borrowers.

Freeze the credit scores of all affected borrowers.

Insert a suitable disclaimer in the borrowers' records to reflect the non-updatability of the record due to the CI's closure.

Transfer all borrower data to an active CI designated by the RBI.

✅ Correct Answer: C

The correct answer is C. In case of cancellation of a CI's CoR or licence, CICs are required to insert a suitable disclaimer in the records of that CI's borrowers.

This disclaimer reflects the non-updatability of the record because the CI has closed, ensuring that future lenders understand why the data is no longer being refreshed without illegally deleting historical credit information.

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Q103: In the event of a cancellation of a Credit Institution's (CI) Certificate of Registration (CoR) or licence, what action are Credit Information Companies (CICs) required to take?

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