CIBIL: The Reserve Bank of India (RBI) has recently made a major change in the credit reporting system. As part of the new rules, banks and financial institutions will now have to update the data to the Credit Bureau every 15 days, whereas earlier this process was done once a month. These new guidelines have come into force from 1 January 2025.
Impact of new rules
This change will make the process of calculating and updating the credit score faster and more accurate. Previously, delay in updating the loan repayment could have a negative impact on the credit scores of borrowers, causing problems in taking new loans. Now this problem will be over from the 15 -day reporting period and the borrowers will soon see improvement in their credit score.
What does 15-day reporting mean?
Credit score will be updated early – Now if a person pays a loan or credit card on time, then his credit score will improve quickly.
Banks will get accurate data – Banks and financial institutions will be able to take decisions on the basis of more accurate and recent loan information before giving loans.
Default and loan fraud will be controlled- Earlier monthly reporting could have been delayed up to 40 days, due to which the banks could take wrong decisions. Now this process will be accelerated and the financial behavior of the borrowers will be better monitoring.
Prohibition on evergreen loan- In the ‘evergreen loan’, where a new loan is taken to repay the old loan, the new rule will also stop it and the loan will be properly evaluated.
Credit score categories
Credit score ranges from 300 to 900, and more than 700 scores are considered good.
Score – category
300–579 bad
580–669 average
670–739 good
740–799 very good
800+ best
Benefits of new rules
Credit score will update rapidly – Timely payments will soon get a better credit score.
Banks will improve decision -making ability – Now banks will get updated data within 15 days instead of looking at old data. Regularly check your credit score and file a complaint with the Credit Bureau immediately to rectify any mistake.
