RBI issued 6 new rules on CIBIL score, keep your credit score correct by avoiding these mistakes

The Reserve Bank of India (RBI) has issued six new rules in view of the increasing complaints related to CIBIL Score. These rules are aimed at increasing transparency for customers and reducing credit score related issues. CIBIL score is a reflection of your financial behavior, and it is very important to keep it good. Let us know about these new rules of RBI and understand how they can benefit you.

1. CIBIL will be updated every 15 days

From now onwards the credit score of customers will be updated every 15 days.

• Effective date: 1 January 2025.
• Rule:
  • Banks and financial institutions have to ensure that the credit information of the customer is updated regularly.
  • Credit Institutions (CIs) are mandated to provide data to Credit Information Companies (CICs) every month.
• Benefit:
  • Customers will be able to quickly see changes in their CIBIL score and make necessary corrections.

2. It is necessary to inform the customer about CIBIL check.

RBI has issued a new instruction to ensure transparency of credit reports.

• What will need to be done?
  • Whenever a bank or NBFC checks the credit report of a customer, the customer will have to give this information.
  • This information can be given through SMS or email.
• Benefit:
  • Customers will be able to know when and who checked their credit report.

3. It is mandatory to give the reason for rejecting the request

If a customer’s loan or credit card request is rejected, the institution will have to explain the reason behind it.

• Rule:
  • The credit institution will have to make a clear list of reasons.
  • Providing this information to the customer will make it easier for him to understand why his request was rejected.
• Benefit:
  • Customers will be able to correct their mistakes and be ready to take loans in future.

4. Get a free credit report every year

RBI has also directed that every customer should get a complete credit report once a year for free.

• How to get it?
  • Credit companies must provide a link on their website.
  • From this link, customers will be able to see their complete credit report and CIBIL score.
• Benefit:
  • Customers will be able to review their credit history and score once for free.

5. Inform the customer before reporting default

It will be mandatory to inform any customer before reporting his default.

• Rule:
  • Banks and loan institutions will inform customers in advance through SMS or email.
  • Each institution will have a nodal officer, who will resolve complaints related to credit score.
• Benefit:
  • Customers will be able to solve their problems in time.

6. Complaints will have to be resolved within 30 days

Credit Information Companies (CICs) have to resolve customer complaints within 30 days.

• Deadlines and penalties:
  • If the complaint is not resolved, a fine of ₹ 100 will have to be paid per day.
  • Loan institutions will have to provide information to the credit bureau within 21 days.
  • The credit bureau will have to resolve the complaint within 9 days.
• Benefit:
  • Customer complaints will be resolved quickly, which will reduce financial problems.

Tips to maintain CIBIL score

1. Pay EMI on time:
   • Non-payment on time leads to bad CIBIL score.
2. Use credit card limit properly:
   • Always use only 30-40% of the limit.
3. Don’t apply for too much credit:
   • Repeatedly applying for loans or cards has a negative impact on the score.
4. Check credit report regularly:
   • If there is any mistake in your credit report, get it corrected immediately.