The Reserve Bank of India (RBI) received numerous complaints about credit scores. Consequently, the Reserve Bank of India has established 6 regulations concerning CIBIL to date. To date, the Reserve Bank has established 6 new regulations concerning the CIBIL score, which will directly aid consumers.
What is the new regulation?
Under this new regulation, the customers’ credit scores will now be updated every 15 days. This regulation (CIBIL Score RBI Rules) will take effect starting January 1, 2025. Customers’ CIBIL scores can be refreshed on the 15th of each month and at the month’s conclusion (CIBIL Score RBI Guidelines). The benefit of this will be that individuals’ CIBIL scores will be refreshed every 15 days.
Information may be transmitted through SMS or email
The central bank has informed all credit reporting agencies that they must notify a customer whenever a bank or NBFC reviews that customer’s credit report. This information may be transmitted through SMS or email. In fact, numerous complaints emerged concerning credit scores, prompting the Reserve Bank of India to make this decision.
If a customer’s application is denied, it is essential to inform them the reason behind it
As per the Reserve Bank of India, if a customer’s application is denied, it is essential to inform them of the rationale behind it. This will help the customer comprehend the reason behind the rejection of his request. A list of the reasons for denying the request must be created and distributed to all credit institutions.
It is essential to notify the customer
If a customer is likely to default, it is essential to notify the customer prior to reporting the default.
If the credit information agency fails to address the client’s complaint within 30 days, it will incur a penalty of Rs 100 for each day.