Module: | Capital Adequacy, Basel Norms & Monetary Policy
Q39: Which of the following statements regarding the Framework for Compensation to Customers for delayed updation of credit information are correct?
1. Complainants are entitled to a compensation of ₹100 per calendar day if the complaint is not resolved within 30 calendar days.
2. A Credit Institution is liable for compensation if it fails to update the CIC within 21 days of being informed.
3. If multiple banks cause the delay, the compensation is shared equally among them.
4. If a Credit Institution resolves the complaint on the 31st day, the compensation payable is ₹100.
Which of the statements given above is/are correct?
2. A Credit Institution is liable for compensation if it fails to update the CIC within 21 days of being informed.
3. If multiple banks cause the delay, the compensation is shared equally among them.
4. If a Credit Institution resolves the complaint on the 31st day, the compensation payable is ₹100.
Which of the statements given above is/are correct?
✅ Correct Answer: A
The correct answer is A. The framework establishes a strict timeline: 30 days total for resolution, with an internal sub-limit of 21 days for the Credit Institution to send updated data to the CIC.
Delay beyond the 30-day aggregate limit attracts a penalty of ₹100 per day (e.g., resolving on the 31st day equals a 1-day delay, resulting in ₹100 compensation). Statement 3 is incorrect because the apportionment of compensation among multiple defaulting banks is done on a weighted average basis relative to the extent of delay caused by each, ensuring fair penalization, not a flat equal split.
Delay beyond the 30-day aggregate limit attracts a penalty of ₹100 per day (e.g., resolving on the 31st day equals a 1-day delay, resulting in ₹100 compensation). Statement 3 is incorrect because the apportionment of compensation among multiple defaulting banks is done on a weighted average basis relative to the extent of delay caused by each, ensuring fair penalization, not a flat equal split.