The Reserve Bank of India (RBI) has announced the implementation of six new regulations that will impact how CIBIL scores are managed and monitored. These changes are set to take effect on January 1, 2025. The following sections outline these upcoming regulations in detail.
1. Bi-Monthly CIBIL Score Updates
- Current Practice: As of now, CIBIL scores are updated monthly.
- New Regulation: Starting January 1, 2025, CIBIL scores will be updated every 15 days. This will provide a more frequent and accurate reflection of your credit activities.
2. Notification of Credit Report Access
- Current Practice: Notifications are not consistently sent when someone accesses your credit report.
- New Regulation: Whenever your CIBIL score or credit report is checked, you will receive a notification via SMS or email. This will allow you to stay informed about who is viewing your credit information.
3. Mandatory Disclosure of Loan or Credit Card Rejections
- Current Practice: Lenders may not always provide a reason when rejecting a loan or credit card application.
- New Regulation: If your loan or credit card application is rejected, the lender is now required to disclose the reason for rejection. This ensures transparency and allows you to understand the factors affecting your creditworthiness.
4. Annual Credit Card Report Provision
- Current Practice: Credit card companies may or may not provide a detailed credit report on a regular basis.
- New Regulation: Credit card companies must send you a complete credit card report once a year. This report will give you a comprehensive view of how your CIBIL score is evolving over time, without any additional charges.
5. Pre-Notification of Missed Payments
- Current Practice: Companies may report missed payments without notifying the customer first.
- New Regulation: If you miss a payment on your credit card or loan, the lending company must inform you before they report the missed payment. If the company fails to notify you and still reports the missed payment, you can file a complaint against the company.
6. Resolution of Credit Card-Related Complaints
- Current Practice: There is no strict timeline for resolving credit card-related complaints.
- New Regulation: Any complaints related to your credit card must be resolved within 30 days. If the company fails to resolve the complaint within this period, they are required to compensate you with Rs. 100 for each day the complaint remains unresolved.
These new regulations aim to enhance transparency, ensure timely updates, and protect consumers in their financial dealings. As these rules come into force, it’s crucial to stay informed and make sure your credit activities are in line with the new guidelines.
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