Outlook Business Desk
A credit score, typically ranging from 300 to 900, reflects your creditworthiness. It is determined by factors such as payment history, credit utilization, and credit history. Lenders use it to assess loan terms, interest rates, and approval decisions
In April 2024, the Reserve Bank of India (RBI) revised CIBIL rules to enhance transparency and consumer awareness about credit scores. Understanding these rules ensures better financial security and more informed credit decisions. Here are the key updates from RBI:
Starting January 1, 2025, financial institutions will update credit scores every 15 days, with CIBIL scores being revised on the 15th and last day of each month
The RBI requires that you be notified whenever a bank or NBFC (Non-Banking Financial Company) accesses your credit report. These notifications will be sent via email or SMS to keep you informed
If a lender denies your loan or credit card application, they are required to provide a clear reason. This ensures that consumers can understand and address the factors behind the rejection
Credit agencies are required to offer consumers one free, detailed credit report annually. A dedicated link on their websites will allow easy access to the free report
Lenders must notify customers before filing a default case, with the information sent via email or SMS. Additionally, nodal officers will be appointed to address consumer grievances related to defaults
Consumer complaints must be resolved within 30 days. If not, the credit bureau will incur a penalty of Rs 100 per day until the issue is addressed. Additionally, consumers may receive compensation if their issue remains unresolved 9 days after adjustments by the bank