Credit Report: RBI Asks Lenders To Submit Borrowers' Credit Information Every 15 Days

Moneylife Digital Team 08 August 2024

To make available accurate credit information to lenders as well as borrowers, Reserve Bank of India (RBI) has asked lenders to submit data to credit information companies (CICs) like CIBIL TransUnion, Experian or CRIF Highmark every fortnight or at shorter intervals. At present, lenders are required to report credit information to CICs monthly or at shorter intervals as agreed between the lenders and the CICs. Due to the easy availability of credit through digital mode, the credit profile of borrowers can change rapidly. Faster reporting of these changes will help lenders improve their decision-making when granting credit.

According to RBI governor Shaktikanta Das the availability of accurate credit information is vital for lenders as well as borrowers. "It is proposed to increase the frequency of reporting of credit information to a fortnightly basis or at shorter intervals. Consequently, borrowers will benefit from faster updation of their credit information, especially when they repay their loans. The lenders, on their part, will be able to make better risk assessment of borrowers."

In a notification, the central bank directed CICs and credit institutions (CIs) or lenders to keep the credit information collected and maintained by them updated regularly on a fortnightly basis (i.e., as on 15th and last day of the respective month) or at such shorter intervals as mutually agreed upon between them.

"The fortnightly submission of credit information by CIs to CICs shall be ensured within seven calendar days of the relevant reporting fortnight. Further, CICs are required to ingest credit information data received from the CIs, as per their data acceptance rules, within seven calendar days of its receipt from the CIs. This is now being revised to five calendar days of its receipt," the notification says.

RBI says these directions will come into effect from 1 January 2025, but CIs and CICs are "encouraged to give effect to these instructions as expeditiously as feasible but not later than 1st January."

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