Question
Under Sections 20 and 23(2) of the Credit Information Companies (Regulation) Act, 2005, a CIC, Z, enters into an agreement to share borrowers' credit information with a specified user (insurance company) ostensibly for insurance underwriting purposes. However, Z's internal audit reveals that the CIC systematically provided credit information to a third party (a private debt collection agency) not designated as a specified user under the regulations. Z's officers claim that the third party paid for the information, and the practice continued for 18 months before detection. Z did not maintain adequate records or consent from borrowers for this sharing. Which of the following correctly applies Section 20 and Section 23(2) to this violation?
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