The Reserve Bank of India (RBI) is introducing new rules for credit scores that will come into effect from January 2026.
These changes are designed to benefit loan borrowers and make credit reporting faster and more transparent.
Previously, credit scores were updated every 30 to 45 days, which often delayed loan approvals or reflecting improvements in a borrower’s financial behavior.
With the new rules, credit scores will now be updated every 14 days, giving borrowers quicker access to accurate credit information.
Faster Updates for Credit Scores
Banks and NBFCs have been instructed to submit credit information to bureaus like CIBIL, Experian, Equifax, and CRIF Highmark at least twice a month.
This means:
Prepayments or loan closures will reflect on your credit report much faster.
Customers can access loans more quickly.
Banks can better assess risk with up-to-date data.
A credit score can fluctuate based on factors like taking new loans, paying EMIs on time, delays, defaults, or errors in reports.
The faster updates will ensure your score reflects the true current status of your finances.
Instant Alerts and Customer Protection
Under the new rules, you will receive an SMS or email alert whenever your credit report is accessed.
This protects against fraudulent loan attempts, as you’ll be immediately notified if someone tries to misuse your credit information.
Additionally, banks and credit bureaus cannot mark you as a defaulter without informing you.
Notifications must be sent before submitting information to credit bureaus, ensuring transparency.
Compensation for Delays
The RBI rules also protect customers in case of delays.
If a bank or credit bureau fails to resolve a complaint within 30 days, the customer is entitled to ₹100 per day as compensation.
Any correction in credit information must also be updated within 30 days.
These changes are expected to make the credit system faster, safer, and more customer-friendly, benefiting both borrowers and lenders.
