Major Changes By RBI In Credit Score Guidelines October 2023:

Now you must be well aware of how important CIBIL score is for our financial life and how much care should we take of it? If you have checked your credit score or CIBIL score even once in your life, then this article is very important for you because in this post you will get to know such CIBIL Score Updates which RBI has just announced. There have been a lot of changes in the credit score industry.

5 New Rules Of RBI Regarding CIBIL Score:

Basically these are credit information companies like CIBIL, Experian, CRIF etc., now RBI has started regulating them. RBI has come out with some set of rules which are going to make a big difference in your life. Out of all the rules issued by RBI, there are five most important rules and we will discuss those five rules in this article and tell you what is going to happen in the future. RBI has issued these rules on 26th October 2023 and has given 6 months time to all credit information companies and CICs to implement these rules.

1. Intimation Of Access To Credit Information Report

How many times does it happen to us that you have gone to a bank to ask for a credit card or loan and the bank inquires about your credit score behind your back and you are not even aware of it? This is still fine, how many times does it happen that you go to only two banks but ten banks are checking your credit score?

Now this happens because there is someone among us who passes out internal information that this customer wants to take a loan, hence all the banks inquire about your credit score without your consent. Now, since 10 banks together inquire about your CIBIL score, you face even more hard inquiries due to which your credit score drops by 50-60 points.

To avoid this, RBI has come up with a new rule that whenever your credit score is enquired, you will receive a notification on your email address or your mobile number, so that whenever your credit score is inquired without your information, you can complain about it and save your credit score from falling.

2. Information Regarding Default

In its extension comes the second rule of RBI which is Information Regarding Defaults. How many times does it happen that we feel that our credit score is doing absolutely fine, but as soon as we check our credit score after some time, our credit score falls by 30 to 40 points. Then when we investigate it a bit, we come to know that some payment has been skipped by mistake.

Now we believe that banks notify us when our due payment date is approaching but we receive so many spam messages and calls from banks that we do not know which one is genuine and which one is spam. Due to this, RBI has told the credit information companies that you will notify the customer separately through email and message that your payment has been missed and due to missing your payment, your credit score can be impacted.

To be very honest, this is a very important update so that customers will be aware of what is happening with their credit score and this will also increase the awareness of keeping the credit score good.

3. Free Credit Report:

Currently, this rule is not a new rule, RBI had introduced it in 2016 but in 2023, RBI has modified it a little more. Like we have told you that earlier also you could check your credit report for free in a year. For this, you had to update your details by visiting the website of the credit information agency. But earlier this process was a bit cumbersome and even credit agencies made it a bit difficult for the customer to access their credit score.

Therefore RBI has specified that now these credit information companies have to display this information in bold on the home page of their websites so that no customer misses this information. Through this rule RBI is making sure that maximum people look at their credit report, analyze it and make it better. This will also increase awareness about credit score among the customers. So this is a very significant role made by RBI.

4. ₹100 Fine If Complaint Not Resolved:

I am sure you are going to have a lot of fun after hearing this rule. Basically, if there is anything wrong in your credit report, suppose there is a loan taken by mistake or there is a loan which you have already paid off but is still visible or showing in your credit report. Basically, if you find any mistake in your credit report, you can report it directly to the credit agency. If the credit agency does not resolve your complaint within 30 days, you will get compensation of ₹ 100 per day.

Now an issue may arise in this that the credit agency may force you that we have not received the updated data from the bank, so how can we update you within 30 days?

RBI has found a solution for this also. Basically RBI says that the credit agency should receive updated data and information from the bank within 21 days and if this information is not received by the credit agencies, then the bank will pay compensation of hundred rupees per day, but if the updated data comes to the credit agency within 21 days, then the credit agency will pay the compensation. And your 30 days start from the day you have made your complaint, that is, the bank will have to give the updated data to the credit agency on the 21st day and the credit agency will have 9 days to resolve that complaint.

There is also a problem in this that what if a customer’s complaint is not valid? This means that the customer has either complained by mistake or the point about which he has complained is not valid. In this case, the credit information agency people can say that we did not have to make any changes or we did not have to update anything, then this time of 30 days is not valid on us. For this also RBI has found a solution, here comes our next rule which is –

5. Reason For Rejection Of Data Correction:

According to this rule, if any bank or credit agency rejects your request, then they will have to give you information along with a valid reason as to why they did so.

Now after reading and understanding all these CIBIL Score Updates, it seems that RBI has announced all these rules after thinking very carefully. So that no one can step back from their responsibilities and customers like you and me can get genuine help and we do not have to struggle for this.

Now we have talked about rules, now the question comes that what is going to happen in the future, according to our assessment RBI has just started this and now it will issue many such rules and regulations regarding credit agencies, so that it can be of genuine help to you and me. Whatever latest updates keep coming, we will analyze them and share them with you on this blog. Also, if you find this information beneficial then please share it.


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