The Reserve Bank of India (RBI) has made significant changes in the credit score system and implemented six new rules, which have come into effect from January 1, 2025. The aim of these rules is to address the increasing complaints regarding credit score and provide transparency, security and timely information to the customers.
CIBIL score will now be updated every 15 days
Now the CIBIL score of customers will be updated on the 15th of every month and at the end of the month. This will make the assessment of loan eligibility more accurate and quick. It will be mandatory for banks and NBFCs to send this data to Credit Information Companies (CICs) on time.
Alert will be received on credit report access
Whenever a bank or NBFC views the customer’s credit report, the customer will be notified through SMS or email. This will reduce the possibility of unauthorized access and customers will be able to keep an eye on their credit profile.
Reasons will have to be given on loan rejection
If a customer’s loan or credit card request is rejected, it will be mandatory for the bank to give a clear reason. This will give the customer an opportunity to improve his credit status.
Free credit report once a year
Every customer will be given a full CIBIL report once a year for free. For this, credit companies will have to provide a direct link on their website, so that customers can easily see the report.
Information is necessary before reporting default
If a customer defaults on paying loan or EMI, the bank will have to inform him first. This information will be given through SMS or email so that the customer can resolve it in time.
Complaints resolved in 30 days, otherwise fine
It is mandatory to resolve complaints related to credit score within 30 days. In case of delay, the concerned institution will have to pay a fine of ₹ 100 per day. The bank will get 21 days and the credit bureau will get 9 days, after which the penalty will be applicable.