RBI Tightens Credit Reporting Rules Again - What's Changing From July 2026 & Why It Matters

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The Reserve Bank of India has quietly but firmly tightened the credit reporting framework once again.
This time, the focus is on Asset Reconstruction Companies (ARCs) - entities that deal with stressed, written-off, or acquired loan accounts.

On December 4, 2025, RBI issued the
Reserve Bank of India (Asset Reconstruction Companies – Credit Information Reporting) Amendment Directions, 2025,
which will come into force from July 1, 2026.

At first glance, this may look like a technical compliance update.
In reality, this change can have a direct impact on credit reports, CIBIL scores, and dispute resolution timelines for borrowers.

Let's break it down in plain language.

Why RBI Felt the Need to Intervene​

Over the last few years, RBI has been consistently pushing for:

• Faster credit data updates
• Fewer reporting gaps
• Cleaner, more accurate credit reports

ARCs handle some of the most sensitive credit data - defaulted loans, restructured accounts, settled cases, and recoveries.
Any delay or inconsistency here can seriously damage a borrower's credit profile, sometimes for years.

This amendment is RBI's way of saying:

“Credit data cannot be stale, delayed, or selectively updated anymore.”

1️⃣ Credit Reporting Will Now Happen 4 Times a Month​

What's changing?​

Earlier, reporting frequency was not this granular.
Now, RBI has made it mandatory.

From July 1, 2026, ARCs must report credit data on:

• 9th of the month
• 16th of the month
• 23rd of the month
• Last day of the month

This means weekly-level updates, not monthly delays.

Full File vs Incremental Updates (Important)​

RBI has clearly defined what gets reported and when.

✅ Full File Submission​

• Submitted by 5th of the next month
• Must include:
  • All active accounts
  • Accounts closed or settled since last reporting

✅ Incremental Updates (During the Month)​

For 9th, 16th, and 23rd reporting dates, ARCs will submit only changes, such as:

• New accounts added
• Accounts closed or relationship ended
• Repayments made
• Outstanding balance changes
• Changes in personal details
• Changes in guarantors or ownership
• Accounts where EMI or interest is overdue

⚠️ Even a change only in Days Past Due (DPD) must be reported now.

This is a big deal.

What This Means for Borrowers​

• Faster reflection of repayments
• Faster correction of overdue status
• Less chance of “score not updating for months”
• More transparency in stressed loan reporting

In short: good behaviour will show faster, bad behaviour will also show faster.

2️⃣ CKYC Number Reporting Becomes Mandatory (Where Available)​

RBI has now made it compulsory for ARCs to report the Central KYC (CKYC) number of borrowers to Credit Information Companies (CICs), wherever available.

If CKYC is not available initially, it must be reported as soon as it is generated.

Why this matters:​

• Better identity matching
• Fewer duplicate credit profiles
• Reduced chances of incorrect loan tagging

This is part of RBI's long-term plan to move towards a single, clean borrower identity across the financial system.

3️⃣ Rejected Data Must Be Fixed Immediately​

This is a very borrower-friendly change.

Earlier, some institutions would:

• Ignore rejected data
• Delay corrections
• Let wrong entries sit on credit reports

Now, RBI is very clear:

If CIC rejects data, the ARC must correct and re-submit it before or along with the next reporting cycle.

No excuses. No delays.

This significantly improves credit report dispute resolution quality.

4️⃣ RBI Will Monitor Non-Compliance Publicly (Internally)​

Credit Information Companies (CICs) are now required to:

• Report non-compliant ARCs
• Submit the list to RBI's DAKSH portal
• Do this twice a year (March 31 & September 30)

This puts direct regulatory pressure on entities that don't follow timelines.

TechnoFino Opinion​

This amendment may not grab headlines, but it's extremely important.

Over the last 2-3 years, RBI has been:

• Tightening credit reporting rules
• Reducing update delays
• Improving accountability

This move clearly signals that:

• Credit scores are becoming more real-time
• Reporting errors will be harder to justify
• Institutions handling bad loans are under stricter watch

For disciplined borrowers, this is good news.
For defaulters, the system is becoming less forgiving and more transparent.

So....​

From July 1, 2026, expect:

• Faster credit report updates
• Cleaner ARC data
• Better borrower identity matching
• Quicker correction of errors

RBI is not slowing down on credit discipline and 2026 onwards, credit reporting in India will become sharper, faster, and far less tolerant of delays.

As always, we'll track how banks, ARCs, and CICs actually implement this on the ground.

What do you think?

 

[Odyssey]

Still there's no option to freeze your CIBIL unlike U.S

It's one of the most needed feature same like aadhar biometric lock.

Anyone with just your PAN number can destroy your CIBIL within months.

 

[Aniket Sharma]

Still there's no option to freeze your CIBIL unlike U.S

It's one of the most needed feature same like aadhar biometric lock.

Anyone with just your PAN number can destroy your CIBIL within months.

Really, can you elaborate with only pan number?

 

[✪ D&C Cards Connoisseur 💳]

Much needed change, strict monitoring needed. Previously banks use to destroy cibil score by creating false delay in entries and other fake updates, for which a customer gets resolution or compensation from RBIO, but that involves time, harassment and mental anguish and suffer from incorrect cibil entries / score in the interim. Now, those days will be gone with such timely accurate reporting.

 

[✪ D&C Cards Connoisseur 💳]

Really, can you elaborate with only pan number?

There are cases Aniket, where someone has used other's PAN for loan / CC using the applicants mobile # (for receiving OTP) and the PAN owner doesn't even came to know until and unless he checks his Cibil or try to apply for that product from same bank using his / her PAN and receive error / already existing message. Mostly these frauds I have seen are done offline, may be by agents as well.

 

[BhaiyaJi]

Credit scores/reports will get costly with?

 

[Aniket Sharma]

There are cases Aniket, where someone has used other's PAN for loan / CC using the applicants mobile # (for receiving OTP) and the PAN owner doesn't even came to know until and unless he checks his Cibil or try to apply for that product from same bank using his / her PAN and receive error / already existing message. Mostly these frauds I have seen are done offline, may be by agents as well.

Yeah, online these aren't even possible now a days and reporting dispute removes those hits & accounts.

 

[nari]

Still there's no option to freeze your CIBIL unlike U.S

It's one of the most needed feature same like aadhar biometric lock.

Anyone with just your PAN number can destroy your CIBIL within months.

This is what I am missing after return to India. In US, you can just freeze or unfreeze any of 3 credit bureau accounts so no one can open credit cards with your SSN. I am suprised that Experian or CIBIL(Transunion) didn't implement it in India. I applied for a PNB card and they made hard enquiry immediately but after a few days they made another enquiry for personal loan and I had to dispute and escalate.