RBI's Latest CIBIL Score Rules: Unveiling the Crucial Update.

[Vineet Kumar]

The Reserve Bank of India (RBI) has responded to credit score concerns by introducing a set of new rules, effective from April 26, 2024.

These rules, designed to address complaints and improve transparency, bring about notable changes in credit reporting practices.

1. Mandatory Customer Notifications:
Whenever a bank or NBFC accesses a customer's credit report, they are now obligated to send the customer a notification. This information can be conveniently delivered via SMS or email.

2. Clear Reasons for Request Rejections:
In the case of a rejected request, the lending institution must provide the customer with a clear explanation for the rejection. A detailed list of reasons is to be compiled and shared with the customer.

3. Free Annual Full Credit Report:
Credit companies are now required to furnish customers with a complimentary full credit report annually. To ensure accessibility, these reports can be accessed through a provided link on the company's website.

4. Advance Notice of Default Reporting:
Prior to reporting a default, loan providers must notify the customer about the impending default situation. This notification should be promptly delivered via SMS or email, keeping customers informed in advance.

5. Timely Complaint Resolution:
Credit information companies are now mandated to resolve customer complaints within 30 days. Failure to meet this deadline will result in a daily fine of Rs 100 until the complaint is successfully addressed.

These rules signify a crucial step in providing consumers with enhanced control and awareness of their credit information. The changes aim to establish a more transparent and accountable credit reporting system in India.

 

[Akashn]

2. Clear Reasons for Request Rejections:
In the case of a rejected request, the lending institution must provide the customer with a clear explanation for the rejection. A detailed list of reasons is to be compiled and shared with the customer.

Welcome move. But i guess they already implemented this rule in the past right?

 

[Predator]

Welcome move. But i guess they already implemented this rule in the past right?

only in letter, not in spirit

 

[D₹V]

The Reserve Bank of India (RBI) has responded to credit score concerns by introducing a set of new rules, effective from April 26, 2024.

These rules, designed to address complaints and improve transparency, bring about notable changes in credit reporting practices.

1. Mandatory Customer Notifications:
Whenever a bank or NBFC accesses a customer's credit report, they are now obligated to send the customer a notification. This information can be conveniently delivered via SMS or email.

2. Clear Reasons for Request Rejections:
In the case of a rejected request, the lending institution must provide the customer with a clear explanation for the rejection. A detailed list of reasons is to be compiled and shared with the customer.

3. Free Annual Full Credit Report:
Credit companies are now required to furnish customers with a complimentary full credit report annually. To ensure accessibility, these reports can be accessed through a provided link on the company's website.

4. Advance Notice of Default Reporting:
Prior to reporting a default, loan providers must notify the customer about the impending default situation. This notification should be promptly delivered via SMS or email, keeping customers informed in advance.

5. Timely Complaint Resolution:
Credit information companies are now mandated to resolve customer complaints within 30 days. Failure to meet this deadline will result in a daily fine of Rs 100 until the complaint is successfully addressed.

These rules signify a crucial step in providing consumers with enhanced control and awareness of their credit information. The changes aim to establish a more transparent and accountable credit reporting system in India.

Most of the rules are already announced in past.

 

[Deleted member 21942]

Recently RBI also announced rules for card network portability and to disclose card rejection reason instead of mentioning internal policies by banks. We already know how banks are very keen in not following these rules. You can expect the same fate for these new rules too.

 

[sriteja]

With the first rule won't part of CIBIL's business model gets effected? They offer this a paid feature currently.

The Reserve Bank of India (RBI) has responded to credit score concerns by introducing a set of new rules, effective from April 26, 2024.

These rules, designed to address complaints and improve transparency, bring about notable changes in credit reporting practices.

1. Mandatory Customer Notifications:
Whenever a bank or NBFC accesses a customer's credit report, they are now obligated to send the customer a notification. This information can be conveniently delivered via SMS or email.

2. Clear Reasons for Request Rejections:
In the case of a rejected request, the lending institution must provide the customer with a clear explanation for the rejection. A detailed list of reasons is to be compiled and shared with the customer.

3. Free Annual Full Credit Report:
Credit companies are now required to furnish customers with a complimentary full credit report annually. To ensure accessibility, these reports can be accessed through a provided link on the company's website.

4. Advance Notice of Default Reporting:
Prior to reporting a default, loan providers must notify the customer about the impending default situation. This notification should be promptly delivered via SMS or email, keeping customers informed in advance.

5. Timely Complaint Resolution:
Credit information companies are now mandated to resolve customer complaints within 30 days. Failure to meet this deadline will result in a daily fine of Rs 100 until the complaint is successfully addressed.

These rules signify a crucial step in providing consumers with enhanced control and awareness of their credit information. The changes aim to establish a more transparent and accountable credit reporting system in India.

 

[thanix]

First RBI has to implement a explicit OTP based authentication like Aadhar for credit report enquiry for loan issuer or credit card issuer companies to prevent misuse of credit enquiries.

 

[SSV]

First RBI has to implement a explicit OTP based authentication like Aadhar for credit report enquiry for loan issuer or credit card issuer companies to prevent misuse of credit enquiries.

Yes, this is the need of the hour ... very much.. rather than crap rules that Banks never follow or pretend to follow...

 

[shashankrt]

First RBI has to implement a explicit OTP based authentication like Aadhar for credit report enquiry for loan issuer or credit card issuer companies to prevent misuse of credit enquiries.

Completely agree. Recently got 2 hits on cibil via IDfc without any notification

 

[aceventura]

2. Clear Reasons for Request Rejections:
In the case of a rejected request, the lending institution must provide the customer with a clear explanation for the rejection. A detailed list of reasons is to be compiled and shared with the customer.

This has nothing to do with Credit report, right? Or are they going to start recording rejections in the report as well?

 

[Pack_of_Cards]

Recently RBI also announced rules for card network portability.

I guess this is more of a recommendation from RBI rather than a rule that's why it is bank's free will to follow or not.

 

[Deleted member 21942]

I guess this is more of a recommendation from RBI rather than a rule that's why it is bank's free will to follow or not.

Same like what RBI has recommended banks to give clear rejection reasons for credit cards instead of mentioning the reason as internal policies.