RBI New Guidelines: The Reserve Bank of India has issued important draft guidelines to make the country’s credit system more reliable and modern. Under the new system, all credit information companies will be required to update credit scores every seven days. Currently, this process is completed once every fifteen days, which has hindered timely loan and credit card approvals for many customers.
New update system to be implemented from April 1, 2026
The RBI has announced that this provision will be implemented from April 1, 2026. Under the new rules, CICs will be required to update the data system on the 7th, 14th, 21st, 28th, and the last day of every month. This will provide customers with more up-to-date information when viewing their credit reports.
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Loan closure information will have to be provided on the same day
The new guidelines also make significant changes to loan or credit card closure information. Banks and financial institutions will now be required to report account closures to credit bureaus on the same day. Previously, this process would drag on for days or weeks, delaying customer credit score updates and hindering the ability to secure new loans.
No Credit Checks Without Customer Permission
The RBI, emphasizing personal data security, has also decided that no bank or NBFC will be able to access a customer’s credit report without their explicit permission. This will reduce the likelihood of unnecessary hard inquiries and eliminate the problem of unreasonable customer score drops. This change will make customers’ credit profiles more secure and controlled.
Strict Penalties for Data Errors or Delays
Strict penalties have now been introduced for credit data errors, delayed updates, and unauthorized credit checks. This will increase the responsibility on banks and other financial institutions to maintain accurate and timely customer data updates. This will also provide customers with the opportunity to see rapid improvements in their credit scores.
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Banks will receive updated credit profiles.
A major benefit of the new system is that banks will now have access to fully updated credit reports for their customers. This will enable them to better analyze risk and ensure fairness and transparency when determining the interest rate, term, or amount of a loan. This will increase both efficiency and transparency across the banking system.