CIBIL Score New Rules : Today, a credit score or CIBIL score is not just a two-digit number—it has become an essential part of people’s financial lives. These three digits serve as a mirror of our financial behavior and relationship with banks. The Reserve Bank of India (RBI) and the Government have authorized certain private agencies to calculate individuals’ CIBIL scores. Recently, RBI has introduced six important rules related to credit scores that every bank customer must know.
A CIBIL score is a three-digit number that helps banks determine whether you are eligible for a loan or not. This score depends on several factors. The most crucial factor is whether you repay your loans and EMIs on time. Your payment history plays a major role in maintaining a healthy credit score. Apart from this, even your bill payments affect your CIBIL score. To make the system more transparent and consumer-friendly, the RBI has implemented six new rules for credit score management. These rules will directly benefit millions of bank customers across India.
Earlier, the RBI had issued five rules in response to numerous complaints it received regarding credit score discrepancies. Recently, a sixth rule has been added, making the total six rules that are now in effect. Understanding these will help you maintain a good credit score—which in turn makes it easier to get loans from banks.
RBI Rule 1 : Credit Score Will Be Updated Every 15 Days
According to the first rule, banks and financial institutions must update credit score data every 15 days. This rule has been implemented starting from January 1. RBI has made it mandatory for all credit institutions and lenders to update customers’ credit data twice a month—around the 15th day and the last day of every month.
Credit institutions are also required to share customers’ updated credit information with Credit Information Companies (CICs) each month without fail.
RBI Rule 2: Customers Must Be Notified When Their Credit Report Is Checked
The second rule states that whenever a bank or lending institution checks a customer’s credit report, the customer must be informed through an email or SMS notification. This rule was introduced by the RBI after receiving multiple complaints from customers who were unaware that their credit reports were being accessed.
RBI Rule 3: Rejection Reasons Must Be Clearly Stated
Under the third rule, if a bank or financial institution rejects any customer’s request, it must provide a clear reason for the rejection. The RBI has made it clear that no customer request can be dismissed without proper justification. This promotes transparency and helps customers understand the areas they need to improve in.
RBI Rule 4: Free Annual Credit Report
According to the fourth rule, credit bureaus or CIBIL companies must provide one free credit report every year to each customer. This report should include the customer’s complete credit score and credit history. Credit bureaus are required to provide a dedicated link or online window on their website from where users can access this free report easily.
RBI Rule 5: Nodal Officer and Default Reporting Process
As per this rule, if a bank plans to report a customer as a defaulter, it must inform the customer first before taking any such action. The bank must send this information via email or SMS. Additionally, every bank is now required to appoint a Nodal Officer to handle all credit score–related queries and complaints from customers.
RBI Rule 6: ₹100 Daily Penalty for Delayed Complaint Resolution
According to the sixth and latest rule, Credit Information Companies (CICs) must resolve any complaint within 30 days.
If the issue is not resolved within this period, a penalty of ₹100 per day will be imposed.
- The lending institution (bank or NBFC) must resolve customer complaints within 21 days.
- If unresolved, the complaint must then be forwarded to the credit bureau, which will have 9 additional days to settle it.
- If the bank fails to forward the complaint within 21 days, the penalty will apply to the bank.
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If the credit bureau fails to resolve it within the next 9 days, the penalty will apply to the bureau itself.
Conclusion
These six rules from the Reserve Bank of India aim to bring more transparency, accountability, and fairness to the credit score system. They ensure that customers are kept informed, treated fairly, and have access to accurate information about their credit standing. Maintaining a good CIBIL score not only helps you secure loans more easily but also improves your overall financial credibility.
