The Reserve Bank of India (RBI) has introduced several updates and guidelines regarding CIBIL scores to enhance transparency, accuracy, and consumer protection within the credit system. Here are some key points:
More Frequent Updates: Starting January 1, 2025, financial institutions are required to update credit scores every 15 days, with CIBIL scores being revised on the 15th and the last day of each month. This aims to ensure that credit information reflects more current financial behavior of borrowers
Notification for Credit Checks: If a bank or Non-Banking Financial Company (NBFC) accesses your credit report, you will be notified via email or SMS. This measure increases transparency and awareness among consumers about when their credit information is being checked.
Reasons for Loan Rejection: Lenders are now obligated to provide explicit reasons when they reject a loan or credit card application. This helps consumers understand why their application was not successful, allowing them to take corrective action if necessary
Free Annual Credit Report: Credit information companies must provide customers with one free full credit report annually. This empowers individuals to check their credit status without financial barriers, ensuring they can monitor their credit health and address any inaccuracies.
Pre-Default Notification: Before reporting a customer as a defaulter, credit companies are required to inform them. This gives individuals the opportunity to resolve issues before their credit score is negatively affected.
Complaint Resolution: The RBI has also set time frames for resolving credit score-related complaints, with penalties for non-compliance, ensuring that customer grievances are addressed promptly.
These guidelines reflect RBI's commitment to fostering a more transparent, consumer-friendly credit environment in India. If you have specific questions about how these changes might affect you or how to check your CIBIL score, consider visiting the websites of the credit bureaus or financial institutions directly.
---------------------------------------------------------------------------------------------------------------------------------
No comments:
Post a Comment