Section 30 of The Credit Information Companies (Regulation) Act, 2005. in hindi
- (1)No suit or other legal proceedings or prosecution shall lie against the Reserve Bank or the Central Government or credit information company or credit institution, or their chairperson, director, member, auditor, adviser, officer or other employee, or agent or any person authorised by the Reserve Bank or the Central Government or credit information company or credit institution to discharge any function under this Act, for any loss or damage caused or as is likely to be caused by anything which is in good faith done or intended to be done, in pursuance of this Act or any other law for the time being in force.
- (2)Nothing contained in sub-section (1) shall affect the right of any person to claim damages against a credit information company, a credit institution or their chairperson, director, member, auditor, adviser, officer or other employee or agents, as the case may be, in respect of loss caused to him on account of any such disclosure made by anyone of them and which is unauthorised or fraudulent or contrary to provisions of this Act, or practices or usages customary among them.
Summary
- The Reserve Bank, the Central Government, credit companies, and their staff are protected from lawsuits and prosecution for actions taken in good faith.
- If they genuinely try to follow the rules of this Act or other laws, they cannot be sued for any accidental loss or damage their actions might cause.
- However, this legal protection does not cover disclosures of information that are unauthorized, fraudulent, or contrary to the Act.
- If someone suffers a loss because of a fraudulent or unauthorized leak of information, they still have the absolute right to claim damages against the company.
Practical examples
FAQ
1. Can I sue a credit bureau if a routine, legally required update accidentally lowers my credit rating?
No, you generally cannot sue them for losses caused by actions taken in good faith in pursuance of the Act.
2. What happens if an employee steals and leaks my data on purpose?
You absolutely can claim damages for losses caused by unauthorized or fraudulent disclosures.
3. Does this legal protection apply to the Central Government as well?
Yes, the Central Government, the Reserve Bank, and their authorized personnel are all protected when acting in good faith.
Test yourself
Q1.Under Section 30 of The Credit Information Companies (Regulation) Act, 2005., what condition must be met for an action to be protected from legal proceedings or prosecution?
Q2.Under Section 30 of The Credit Information Companies (Regulation) Act, 2005., which of the following groups is granted protection against prosecution for good faith actions?
Q3.Under Section 30 of The Credit Information Companies (Regulation) Act, 2005., in which scenario does a person explicitly retain the right to claim damages?
Q4.Under Section 30 of The Credit Information Companies (Regulation) Act, 2005., if a disclosure of information causes a financial loss to a person, but the disclosure was fully compliant with customary practices and the Act, can the person claim damages?