RBI New Rule: If you’re applying for a loan from a bank, your credit score must be good. Without a good credit score, it’s difficult to get a loan. Now, a new system has been implemented. Credit scores play a key role in loan or credit card approval. However, the old system was a problem for many people because credit scores were updated only once a month.
This caused delays in score changes even after making timely payments. Now, the RBI has issued new draft guidelines, under which credit scores will be updated weekly. This new rule will come into effect on April 1, 2026, and will immediately benefit millions of people.
Read Here: Poco M8 Pro may launch in India soon- details revealed
Problems with the Old System
Previously, banks and NBFCs used to send data to credit bureaus once a month or every 15 days. This would often take 30 to 45 days for changes to appear in scores, even after paying EMIs, closing loans, or clearing overdue payments. This led to delays in loan approvals, higher interest rates, and sometimes, applications were rejected due to incorrect or outdated information. RBI believes that real-time updates are essential for better credit decisions.
How the new rule will work
Now, banks will send data on the 7th, 14th, 21st, 28th, and the last day of every month. This data will only include changes such as taking out a new loan, closing an account, paying EMIs, clearing overdue, or changing the status of a loan. The complete monthly report must be submitted to the bank by the third of every month. Credit information companies will process this data faster, so your credit score will be updated within 7 days.
Read Here: New Labor Code 2025: Government Confirms No Cut in Take-Home Salary for Employees, See Deatils
Who will benefit the most?
Those who have recently repaid loans or cleared credit card balances will see their credit scores increase faster. This will increase the chances of getting a loan faster and may also lead to lower interest rates, as banks will make decisions based on the latest data. This change will be very helpful for people trying to improve their credit scores, young people starting new ventures, and small businesses.
Impact on Banks and Credit Bureaus
Banks will be required to upgrade their systems to submit data within two days of each cutoff date. Any delay will result in an immediate alert on the RBI’s DAKSH portal. Credit bureaus will also need to enhance their capacity to process data faster and correct errors promptly.