Updated for 2026 Syllabus Detailed Explanations High-Yield Core Concepts

Bank Promotion Exam Guide

Banking Awareness | Banking Knowledge | for all Bank Exams

Module: | Priority Sector, Consumer Protection & Digital Lending

Q126: When a Credit Institution (CI) corrects erroneous data, who is responsible for updating that data in the Credit Information Company's (CIC) database?

A
The CIC, which rectifies the data independently.
B
The CI, which must rectify the data at the source.
C
The borrower, who must submit a correction form to the CIC.
D
The RBI, which mediates the data correction.
✅ Correct Answer: B
The correct answer is B. To maintain high data quality and a clear chain of custody, all erroneous data must be corrected exactly at the source by the Credit Institution (CI) that originally submitted the flawed data.
The CIC functions as a secure repository and shall not independently change borrower data unless the CI has officially rectified it at the source and transmitted the system update.