CIBIL score to be updated quicker, RBI asks lenders to report credit info every fortnight

The Reserve Bank of India (RBI) has mandated lenders to report credit information to Credit Information Companies (CICs), including CIBIL every two weeks instead of reporting it at the end of a month.

“The fortnightly reporting frequency would ensure that credit information reports provided by CICs reflect a more recent information. This will be beneficial to both borrowers and lenders (CIs). Borrowers will have the benefit of faster updation of information, especially when they have repaid the loans. Lenders will be able to make better risk assessment of borrowers and also reduce the risk of over-leveraging by borrowers,” Shaktikanta Das, Governor, RBI said on Thursday. These instructions shall be effective from January 1, 2025.

‘Progressive move’

Rajesh Kumar, MD and CEO, TransUnion CIBIL, said this is a very progressive move which will significantly strengthen the credit information ecosystem. “With more frequent data reporting by banks and credit institutions, CICs will be able to update credit records faster and this will translate into more updated data being available for making informed lending decisions by credit grantors. This will also help in resolving consumer disputes faster based on updated data in the credit records. Credit information solutions help create economic opportunity for millions of people in India and we take our responsibility to deliver accurate data very seriously. As India’s pioneer credit information company, we work constantly to strengthen the credit information ecosystem for the public good,” Kumar said

RBI has asked CICs to provide a list of credit institutions (CIs) that are not adhering to the fortnightly data submission timelines to Department of Supervision, Reserve Bank of India, Central Office at half yearly intervals (as on March 31 and September 30 each year) for information and monitoring purposes.