Latest RBI Rules on CIBIL Score and Credit Report

You can now see your credit score updated much faster under the RBI’s new directive. Now, Credit Information Companies (CICs) like CIBIL, Experian, and Equifax will update your credit data every 15 days. Credit institutions must submit borrower data within 7 days from the reporting date (15th or last day of the month).

Here is why it matters:

• This means your timely repayments, loan closures, or corrections will reflect quicker than they used to

• With faster updates, lenders will be able to view your most recent financial status and help you get quicker approvals

Every individual remains entitled to one free credit report each year. Credit bureaus have been required to provide one free full credit report annually since 2017. The 2025 rules reinforce this requirement and make it mandatory for companies to clearly display the access link on their websites.

Here is why it matters:

• RBI imposed this rule to make sure everyone gets equal access to credit information

• You can check and track your credit history

• It will be easy to monitor your overall financial position

• You can detect errors or discrepancies before it is too late and take corrective actions on time

RBI mandates all Credit Institutions (CIs) to submit credit data in a single, standardised format. Reporting entities have to use this non-proprietary format consistently, segmented as:

• Form 1: Consumer segment

• Form 2: Commercial segment

• Form 3: Microfinance segment

All credit institutions, including banks, NBFCs, and ARCs, must now become members of every CIC registered with the RBI.

Here is why it matters:

• Lenders cannot treat you differently based on the bureau you use

• This will ensure fair evaluation for every borrower, regardless of the lender or credit bureau

The RBI has directed banks, NBFCs, and credit bureaus to improve transparency in credit reporting. They can improve their customer service through these steps:

• They must alert you by SMS or email whenever an authorised party, such as a lender, accesses your Credit Information Report (CIR)

• They also need to alert you by SMS or email when they report defaults or overdue payments to CICs

• CIs have to use the revised Uniform Credit Reporting Format to enable the alert system

• CIs need to run campaigns to encourage you to share your mobile numbers and email addresses

Here is why it matters:

• This rule will give you the chance to clear dues and protect your credit score to avoid bigger issues

• Clear alerts will reduce errors in your credit records

• You will know what is going on behind your back and when to take action

You can now correct mistakes in your credit report more easily. Based on the RBI rules, the institutions need to act quickly to resolve your issue. These rules include the following:

• Disputes must be resolved within 30 days- 21 days by the credit institution and 9 days by the CIC, with compensation of ₹100 per day for delays

• Credit bureaus have to notify you of any corrections or updates

• You can approach the RBI Ombudsman in case of denial

Here is why it matters:

• Your lender has to provide clear reasons when they deny a loan or credit based on your credit score

• Lenders must provide a specific reason for rejection, which will help borrowers understand and improve their credit profile

Several factors explain the need to update the CIBIL score rules:

• Credit Growth

More people are using credit cards, loans, and Buy Now Pay Later (BNPL) services. The new model will help to evaluate your repayment behaviour for a better picture.

• Digitalisation

The new rules encourage wider use of digital channels, such as SMS/email alerts and online credit report access. While not explicitly stated as RBI’s goal, these changes make credit management more accessible for borrowers.

• Global Trends

Industry experts suggest that, in line with global trends, Indian credit bureaus may increasingly factor in credit mix, repayment consistency, and utilisation patterns. However, the RBI’s 2025 rules do not introduce behaviour-based scoring directly.

• Financial Awareness

You can track scores with proper transparency with the new rules that offer bi-weekly updates, faster dispute resolution, and clear reasons for loan rejection.

The recent updates will improve transparency, and both borrowers and lenders benefit from it in the following ways: 

• For Borrowers

  • Clear Insights: You can track your credit activities and understand why your lender is rejecting your loan application

  • Better Credit Control: Frequent updates and alerts will help you manage your credit card loan dues properly

  • Early Warnings: Notifications before defaults will give you time to fix issues before they impact your score
    

• For Lenders

  • Faster Handling: Quick dispute resolution will make sure the lenders can manage customer complaints as soon as possible

  • Accurate Decisions: Frequent score updates give lenders up-to-date information for risk assessment before approval

  Building Trust: Transparent communication and clear rejection reasons will build trust with you