Module: | Priority Sector, Consumer Protection & Digital Lending
Q122: Which of the following statements regarding the retention of credit information by third-party entities (obtained via consent) are correct?
1. Information must be stored only for the time to satisfy the purpose, until consent is withdrawn, or for six months, whichever is earliest.
2. If the purpose is not fulfilled within six months, the entity must seek fresh consent from the individual to retain the information.
3. The maximum period information can be stored, even with extensions, is twelve months.
4. If the purpose is not fulfilled in six months, the entity must delete the data and cannot request it again.
2. If the purpose is not fulfilled within six months, the entity must seek fresh consent from the individual to retain the information.
3. The maximum period information can be stored, even with extensions, is twelve months.
4. If the purpose is not fulfilled in six months, the entity must delete the data and cannot request it again.
✅ Correct Answer: A
The correct answer is A. Credit information shared with third parties via explicit consent must be stored strictly for a limited period, which is the *earlier* of: (a) six months, (b) the time required to satisfy the intended purpose, or (c) the point when the individual withdraws consent.
If the purpose is not fulfilled within the initial six-month period, the entity must legally seek fresh consent from the individual to retain the information.
Statement 3 hallucinated a 12-month cap, and Statement 4 falsely claims an absolute ban on requesting fresh consent, making them both incorrect.
If the purpose is not fulfilled within the initial six-month period, the entity must legally seek fresh consent from the individual to retain the information.
Statement 3 hallucinated a 12-month cap, and Statement 4 falsely claims an absolute ban on requesting fresh consent, making them both incorrect.