The Reserve Bank of India (RBI) has introduced significant rules regarding CIBIL scores, which came into effect from January 1, 2025. These changes aim to benefit consumers by making it easier to maintain a good credit score, which is crucial for accessing loans. Here's a breakdown of the new RBI rules:

Key Changes in CIBIL Score Rules:

1. CIBIL Score Updates Within 15 Days

   • As per the new RBI regulations, every customer’s CIBIL score will now be updated within 15 days. This ensures that your credit score is regularly updated and reflects your current financial behavior.

2. Notification of Credit Report Check

   • Whenever a company checks your credit report, they must inform you about it. This information will be shared via SMS or email, keeping you aware of any inquiries made about your credit history.

3. Clear Reasons for Loan Rejection

   • If your loan application is rejected, the company is now obligated to inform you of the specific reasons for rejection. This transparency helps you understand and address the issues affecting your creditworthiness.

4. Access to Full Credit Report Annually

   • Companies will provide you with a full credit report once a year. You’ll be able to view your complete credit history by accessing a link shared by the company on their website.

5. Advance Warning Before Defaulting

   • In case you’re on the verge of defaulting on a loan or credit, companies must notify you before it happens. This gives you a chance to resolve any issues and avoid negative impacts on your credit score.

6. Resolution of Complaints Within 30 Days

   • If you have any complaints regarding your credit report or loan issues, the company must resolve them within 30 days. If they fail to do so, they will be fined Rs 100 per day until the issue is resolved. Credit institutions have 21 days to resolve issues, while credit bureaus have 9 days.

Benefits of These Rules:

• Faster Updates: With CIBIL scores updated more frequently, you’ll have a more accurate reflection of your creditworthiness, allowing for quicker loan approvals.
• Transparency: Clear reasons for loan rejections and access to your full credit report will help you identify and fix any issues with your credit history.
• Consumer Protection: The new rules ensure that companies resolve customer complaints promptly, making the credit process more consumer-friendly.

With these changes, maintaining a good CIBIL score becomes more manageable, and there will be fewer surprises when applying for loans.