CIBIL Score: RBI's 6 CIBIL-related rules that you must know; even credit companies need to inform you before taking these actions

Reserve Bank of India (RBI) introduced five rules on CIBIL scores a few months back. The central bank added one more rule a few days back. The CIBIL Score is a three-digit numeric summary of your credit history, rating, and report that goes from 300 to 900. Your credit rating improves when your score approaches 900.

Four credit information companies in India are approved by RBI. These include Credit Information Bureau (India) Limited (CIBIL), Experian, Equifax, and Highmark. CIBIL score is the most famous credit score in the country.

If your CIBIL score is good, it helps you in taking a loan and to maintain your good credit score, you must avoid one mistake which is to default on payment. That means, paying EMI on time and never defaulting, otherwise your CIBIL will be badly affected.

Now, let's learn about all the rules RBI introduced regarding CIBIL scores.

1- Update CIBIL in every 15 days
According to the RBI's new rule, customers' credit scores will be updated every 15 days. This rule will be effective from January 1, 2025. RBI has said that banks and financial institutions should update their credit score as soon as possible. 

CIBIL score of customers can be updated on the 15th and end of every month. If Credit Institutions (CI) and Credit Information Companies (CIC) wish, they can also fix certain dates as per their wish, under which the data can be updated every 15 days. Credit Institutions (CI) are required to submit customer's credit information to CIC every month.

2- Bank or NBFC needs to inform customer if they check their credit report
The central bank has told all the credit information companies that whenever a bank or NBFC checks the credit report of a customer, it is necessary to send the information to that customer. This information can be sent through SMS or email. Many complaints were coming forward regarding credit score, due to which the RBI has taken this decision.

3- It is necessary to give the reason for rejecting the request
According to the RBI, if any request of a customer is rejected then it is necessary to tell him the reason for the same. This will make it easier for the customer to understand why his request has been rejected. It is important to prepare a list of reasons for rejection of the request and send it to all credit institutions.

4- Give free full credit reports to customers once a year
According to the Reserve Bank of India, credit companies should provide free full credit scores to their customers once a year. For this, the credit company will have to display a link on its website, so that customers can easily check their free full credit report. With this, customers will know their CIBIL score and complete their credit history once a year.

5- It is necessary to inform the customer before reporting the default
According to the Reserve Bank of India, if a customer is going to default then it is important to inform the customer before reporting the default. Loan granting institutions should share all the information by sending SMS/e-mail. Apart from this, banks and loan disbursing institutions should appoint nodal officers. Nodal officers will work to solve credit score-related problems.

6- The complaint should be resolved within 30 days
If the credit information company does not resolve the customer's complaint within 30 days, then it will have to pay a fine of Rs 100 per day. That means, the more late the complaint is resolved, the more fines will have to be paid. The loan disbursing institution will get 21 days and the credit bureau will get nine days. If the bank does not inform the credit bureau within 21 days, the bank will pay compensation. If the complaint is not resolved even after nine days of information from the bank, the credit bureau will have to pay damages.