The Reserve Bank of India (RBI) is tightening its control over credit information companies (CICs) and has rolled out a clear plan to improve customer awareness, data accuracy, and real-time updates.
According to a report by Zee Business, the RBI is actively working to enhance the way credit bureaus operate.
It has asked banks and other regulated institutions to help people better understand how credit reports are created and how actions—like missing payments or even booking rides on platforms like Ola and Uber—can impact their credit scores.
The RBI believes that informed customers will make smarter financial choices, which can also increase credit demand.
RBI Deputy Governor M. Rajeshwar Rao echoed this view in a recent speech. He said that a strong credit system should be based on transparency, efficiency, and trust.
He emphasized that credit bureaus must improve their services and ensure their data is accurate and reliable.
One of the RBI’s key goals is to make credit information more up to date. At present, it can take up to 15 days for credit data to be updated.
The RBI aims to shift to real-time reporting so that events like loan repayments or closures are reflected right away.
This move will likely make credit scores more accurate and improve the overall experience for both borrowers and lenders.
To make this happen, the RBI is pushing for greater use of technology and simpler procedures.
It also highlighted the need for a secure, unique, and verifiable customer ID to reduce errors and prevent duplicate records caused by incorrect identification.
With a stronger focus on customer protection and accurate data, this major reform is expected to change how Indians interact with the credit system—making it more transparent, reliable, and easier to understand.
