RBI has changed 6 CIBIL-Related Rules which can benefit you to track your credit score and improve upon it.
CIBIL score plays a very important role while taking a loan. If you maintain a good CIBIL score approval request for your loan becomes easy. If you don’t default on your EMIs, you can improve your CIBIL Score. Sometimes banks reject your requests without mentioning the reason for rejection. However as per new rules of RBI they can not do it any more.
The Reserve Bank of India (RBI) had introduced five rules on CIBIL scores a few months back & added one more rule a few days back. The CIBIL Score ranges from 300 to 900. Four credit information companies in India are approved by RBI. These include Credit Information Bureau (India) Limited (CIBIL), Experian, Equifax, and Highmark. But the scores given by CIBIL is the most famous credit score in the country.
These Rules By RBI Regarding CIBIL Scores To Benefit You
1- Update CIBIL In Every 15 Days
According to the RBI’s new rule, customers’ credit scores will be updated every 15 days. This rule will be effective from January 1, 2025. RBI also said that banks and financial institutions are supposed to update their credit score as soon as possible.
2- Bank or NBFC needs to inform customers if they check their credit report
As per the new rule by the central bank, credit information companies need to intimate customers, while checking their credit report. They can inform you through SMS or email.
3- Give Reason For Rejecting The Request
According to the RBI, if any request of a customer is rejected then it is necessary to tell them the valid reason for rejection. It will help the customer to know the reason for the request being rejected.
4- Give Free Full Credit Reports To Customers Once A Year
According to the Reserve Bank of India, credit companies should provide free full credit scores to their customers once a year. Credit companies also need to display a link on its website for the customers who can easily check their free full credit report for free.
5- It is necessary to inform the customer before reporting the default
According to the Reserve Bank of India, if a customer is going to default then it is necessary for credit companies to inform the customer before reporting the default. They can share all the information by sending SMS/e-mail. Banks and loan disbursing institutions should also appoint nodal officers to solve credit score-related problems.
6- Complaint Should Be Resolved Within 30 Days
Credit information companies need not resolve the customer’s complaint within 30 days. If they fail to do so, then they will have to pay a fine of Rs 100 per day. The loan disbursing institution will get 21 days and the credit bureau will get nine days. If the bank does not inform the credit bureau within 21 days, the bank will pay compensation. If the complaint is not resolved even after nine days of information from the bank, the credit bureau will have to pay damages.