Credit Bureau Records To Be Updated Every 15 Days: RBI
Date
1/8/2025 11:20:06 PM
(MENAFN- KNN India)
New Delhi, Jan 8 (KNN)
The Reserve bank of India (RBI) has announced new regulations requiring all lenders to update credit bureau records every 15 days, starting January 1, 2025, marking a significant shift from the current monthly reporting system. This initiative aims to create a more dynamic and accurate credit information framework.
The new directive is designed to establish standardised protocols for credit information reporting and dissemination while ensuring the confidentiality and security of sensitive financial data.
The framework also includes provisions for consumers to access their credit information and seek redress for credit reporting-related grievances.
Under the current monthly reporting system, missed payments or defaults can take up to 40 days to appear in credit records, potentially leading to outdated information and imprecise creditworthiness assessments.
The new 15-day reporting cycle will enable faster reflection of both timely payments and defaults in credit scores, allowing lenders to make decisions based on more current financial behavior.
The RBI has also addressed concerns regarding Credit Information Companies (CICs) sharing credit information with non-Specified Users (SUs) based on individual consent. Given the sensitive nature of this data and potential misuse risks, the central bank has directed CICs to implement appropriate safeguards.
Additionally, CICs will be required to send SMS or email alerts to customers when their Credit Information Reports (CIR) are accessed by SUs, provided the customer's contact details are available.
This enhanced reporting system is expected to benefit diligent borrowers, as positive payment behavior will be reflected more quickly in their credit scores.
Simultaneously, lenders will have access to more current credit information, enabling them to make more informed lending decisions and better assess credit risks.
(KNN Bureau)
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