RBI Issues Master Direction on Credit Information Reporting – Here's What You Need to Know

[Bugs Bunny]

The Reserve Bank of India (RBI) has introduced a new Master Direction titled "Credit Information Reporting by Credit Institutions" (Circular: RBI/DoR/2024-25/125
DoR.FIN.REC.No.55/20.16.056/2024-25
Dated: January 06, 2025)

These measures aim to enhance transparency, data accuracy, and customer awareness in India's financial system.

Key Highlights:

1. Fortnightly Reporting:
Credit Institutions (CIs) are now mandated to report credit information to Credit Information Companies (CICs) on a fortnightly basis, covering data as of the 15th and the last day of each month.

2. Timely Data Ingestion:
CICs must process and incorporate the received credit information within five calendar days, ensuring that borrowers' credit reports are up to date.

3. Customer Notifications:
When a Credit Information Report (CIR) is accessed, CICs are required to notify the customer via SMS or email. This enhances transparency and keeps borrowers informed about the use of their data.

4. Dispute Resolution and Compensation:

Credit Institutions must provide clear reasons for rejecting any data correction requests.
If a dispute remains unresolved beyond 30 days, customers are entitled to ₹100/day as compensation for the delay.

Why It Matters:

These changes aim to standardize credit reporting, ensure data confidentiality, and empower customers with greater control over their credit profiles. With more frequent updates and better dispute resolution mechanisms, borrowers can expect a more transparent and fair credit ecosystem.

For the full details, refer to the official RBI notification here

 

[sunit123]

In India, Regulators have unnecessary itch to disturb stable ecosystem

 

[Bugs Bunny]

@TechnoFino @vaibhav111 @Vasuki

 

[Vasuki]

Fortnightly Reporting:
Credit Institutions (CIs) are now mandated to report credit information to Credit Information Companies (CICs) on a fortnightly basis, covering data as of the 15th and the last day of each month.

2. Timely Data Ingestion:
CICs must process and incorporate the received credit information within five calendar days, ensuring that borrowers' credit reports are up to date.

Mostly bank follow these
But 30th day of month
Not 15th

Icici is updating statement just like sbi. Within 5 days of statement generation

 

[HumorSimpson]

@TechnoFino @vaibhav111 @Vasuki

Please read the preamble of @D₹V (D₹eam of Viksit) TF 2027. No tagging, no spamming unnecessarily.

 

[Vasuki]

Please read the preamble of @D₹V (D₹eam of Viksit) TF 2027. No tagging, no spamming unnecessarily.

Here I m worried by too frequent updation on cibil 😆

 

[kuchbhi]

Please read the preamble of @D₹V (D₹eam of Viksit) TF 2027. No tagging, no spamming unnecessarily.

No TF ARMY was harmed!

The Reserve Bank of India (RBI) has introduced a new Master Direction titled "Credit Information Reporting by Credit Institutions" (Circular: RBI/DoR/2024-25/125
DoR.FIN.REC.No.55/20.16.056/2024-25
Dated: January 06, 2025)

These measures aim to enhance transparency, data accuracy, and customer awareness in India's financial system.

Key Highlights:

1. Fortnightly Reporting:
Credit Institutions (CIs) are now mandated to report credit information to Credit Information Companies (CICs) on a fortnightly basis, covering data as of the 15th and the last day of each month.

ya some banks have already started fortnight reporting

 

[HumorSimpson]

Here I m worried by too frequent updation on cibil 😆

Don't worry. In this frequent update a small mistake from them can reward you 10K compensation like it did to @sjmajumder

 

[HumorSimpson]

No TF ARMY was harmed

It hurts few serious members

 

[Indian]

scb is the only bank not following, most of the banks are reporting

 

[Vasuki]

It hurts few serious members

Charm once lost never lift up wrinkles

 

[Credit_Cards]

There are multiple future reforms needed, this is just a single step:

Lets take an example where an individual applies for Home Loan and SBI offered 0.5% lesser interest if CIBIL >800 and the individuals' current CIBIL is 795 which could have been 805 as there is +10 points boost if total due is 0 or less but the individual's outstanding due is 1000 rupees as one of the financial institution has not updated the current state for last 45 days. There are practical cases where fast and consistent reporting can be of value.

Also they need to bring in place a uniform template for all 4 credit bureau with more transparency on calculations.

Where there can be multiple more steps needed on corporate front than retail.

 

[sunit123]

There are multiple future reforms needed, this is just a single step:

Lets take an example where an individual applies for Home Loan and SBI offered 0.5% lesser interest if CIBIL >800 and the individuals' current CIBIL is 795 which could have been 805 as there is +10 points boost if total due is 0 or less but the individual's outstanding due is 1000 rupees as one of the financial institution has not updated the current state for last 45 days. There are practical cases where fast and consistent reporting can be of value.

Also they need to bring in place a uniform template for all 4 credit bureau with more transparency on calculations.

Where there can be multiple more steps needed on corporate front than retail.

bhai pehle vijay mallya, mehul choksi, neerav modi etc ke loan recover karlo phir reforms ki baat karenge...It is called penny wise and pound foolish

 

[Credit_Cards]

bhai pehle vijay mallya, mehul choksi, neerav modi etc ke loan recover karlo phir reforms ki baat karenge...It is called penny wise and pound foolish

utni samajh hoti to idhar forum pe nahi economist pe column likhta na bro

 

[dvader]

Honestly every 15 days is excessive. But at least there is a standard now. We now have just 15 days to keep our utilization in check, rest all is fine. RBI should have kept the frequency intact and standardized the reporting date. May be they did some study and found the reporting frequency helps improve some macro economic parameter (eg avg NPA) and went with it. I trust RBI more than I trust any Indian Bank so there is that.