the dual objective of putting in place an efficient system of sharing of credit information in the larger interest of financial system on one hand, and maintaining the privacy of such information, on the other. in other words, the act serves as a means to provide an effective and reliable information system on borrowers ( through the database maintained by credit information companies ) and, at the same, time strives to maintain customer confidentiality, to the extent permissible, and privacy as envisaged in tournier ’ s case mentioned earlier. iii. challenges and the road ahead based on stakeholders ’ feedback it is observed that cics in india face issues relating to data accuracy, timeliness and completeness. credit institutions in india need to substantially improve the quality and completeness of data as well as timeliness while furnishing credit information to the cics. they also need to use the credit information data in a more wholesome manner. our impression is that the data on corporates is not being used as much as for retail exposures. this needs improvement. let me now provide some direction that this sector would need to take in the future. first, credit institutions will need to be more proactive in cases of credit denials and unfailingly ensure that their proposed borrowers are supplied with a copy of their credit reports as provided under the act. in fact, one of the most effective mechanisms for maintaining the quality and accuracy of information is to notify borrowers when their credit applications are refused. this notice of refusal of credit serves as an important tool to cross check the bis central bankers ’ speeches accuracy of the credit information and also informs proposed borrowers of the need to build and maintain a good credit history. the quality and scope of credit data collected and disseminated is the basic building block of an effective credit reporting environment. accuracy of data implies that such data is free of error, truthful, complete and up to date. in this regard, the act provides that credit institutions shall ensure updation of credit information on monthly basis or more frequent intervals, as mutually agreed upon with the cic. inaccurate data may lead to numerous problems, including unjustified loan denials or higher borrowing costs. quality also means that data is sufficient and adequate, implying that : i ) relevant detailed information is captured, including negative as well as positive data ; ii ) information from as many relevant sources is gathered, within the limits established by law and iii ) information is sufficient in terms of the period over

the one lakh mark has already been crossed in the current year ( july 2016 to may 2017 ). our analysis has shown that percentage of complaints on non - adherence of bcsbi code – clause 8 ( 1 ) ( s ) and 8 ( 2 ) ( d ) of bos over a six year period from 2010 – 11 to 2015 – 16 has increased from 24 % to 34 %. a survey conducted by bcsbi suggests that the increase could be on account of disconnect in application and understanding of codes among frontline staff of the member banks. perhaps, engagement of the top management with implementation of codes in their respective banks has also declined. i urge pccos to take effective steps for creating greater awareness and understanding amongst the frontline bank staff by ensuring buy - in from the top management. 5. in my address today, i intend to focus on few important measures which bcsbi, the pccos and the banks can initiate to further the cause of customer service in the sector. a. updation of codes : i am aware that bcsbi has been periodically updating the codes of banks ’ commitments by factoring in the relevant regulatory guidelines, developments in the banking sector and evolving customer expectations. i am glad to learn that the code of banks ’ commitment to customers is currently under review. as you are all aware, in 2014 rbi had released the “ charter of customer rights ” declaring five basic rights of bank customers as broad, overarching principles for protection of bank customers. all banks have since reportedly adopted / incorporated the model “ customer rights policy ” based on the charter formulated jointly 1 / 5 bis central bankers'speeches by iba and bcsbi. i am sure that the committee reviewing the code of banks ’ commitments to their customers would be guided by the spirit of the principles listed out in the “ charter of customer rights ”. on its part, reserve bank will be monitoring aberrations / non - adherence to the charter during supervisory process. specifically, i would urge the committee to factor in following recent developments in the sector and weave them into the codes appropriately while reviewing the same : ( i ) new branch authorization policy : use of banking correspondents business correspondent ( bc ) model has been a major facilitator for financial inclusion especially in unbanked / under - banked areas. recent rbi circular on ‘ rationalization of branch authorization policy ’ recognizes bcs as an important pillar for delivery of banking services in under - banked areas of