The Reserve Bank of India (RBI) has introduced new rules related to CIBIL scores from January 1, 2025. These changes are important for everyone, especially for those who plan to take a loan in the future. These new rules aim to improve transparency, security, and efficiency in the credit system. Let’s take a detailed look at the six major changes.
1. Faster Credit Score Updates
Earlier, updating a CIBIL score took a long time, which delayed loan approvals. Now, with the new rules, banks and credit bureaus will update credit scores every 15 days. This will help customers get real-time updates and make better financial decisions on time.
2. Notification When Banks Check Credit Score
Whenever a bank or financial institution checks a customer’s credit score, the customer will receive a notification via email or SMS. This ensures transparency, and customers will always be aware of who is checking their credit history. It will also prevent any unauthorized access to credit information.
3. Free Credit Report Once a Year
Every customer will get one free credit report every year. Credit information companies will provide a direct link on their websites where customers can easily check their credit report using a mobile phone or computer. This will help individuals track their financial health without any extra cost.
4. Complaint Resolution Within 30 Days
If a customer files a complaint regarding their credit score, it must be resolved within 30 days. If the issue remains unresolved, the credit information company will be fined ₹100 per day. Additionally, if a loan provider fails to update credit details within 21 days, they will also face a penalty. This ensures that errors in credit scores are corrected quickly.
5. Advance Notification for Loan Defaults
If a customer is at risk of loan default, the bank must inform them in advance via SMS or email. This will give borrowers an opportunity to manage their finances, make payments on time, and avoid penalties. This rule will reduce loan defaults and help customers maintain a good credit score.
6. Improved Security and Transparency in Credit Scores
The RBI has introduced measures to make credit scores more secure and transparent. These rules will prevent unauthorized changes to credit histories and ensure that borrowers with good credit scores get loans easily with better terms and lower interest rates.
Conclusion
These new rules will make the loan process smoother and more transparent. Customers can regularly check their credit scores, resolve complaints faster, and get notified about loan risks in advance. If you are planning to take a loan, understanding these new CIBIL score rules will help you manage your finances better.
