RBI shortens frequency of credit reporting to 15 days
Reserve Bank of India (RBI) on Thursday shortened the frequency of reporting credit information of borrowers to credit information companies (CIC) to 15 days. Earlier lenders were required to report this information at monthly intervals. The regulator said this move will provide a more up-to-date picture of a borrower’s indebtedness. The regulator is expected to issue necessary instructions soon.
«It has been decided to increase the frequency of reporting of credit information to CICs from monthly intervals to fortnightly basis or at such shorter intervals as mutually agreed between the credit institutions and CIC,» the RBI said in a statement. «The fortnightly reporting frequency would ensure that credit information reports provided by CICs reflect more recent information.»
RBI said this move will be beneficial to both borrowers and lenders.
«Borrowers will have the benefit of faster updation of information, especially when they have repaid the loans,» RBI said. «Lenders will be able to make better risk assessments of borrowers and also reduce the risk of over-leveraging by borrowers.»
Your CIBIL score will be updated faster as credit information companies will now get fortnightly reports from lenders, says RBI
Earlier, if a customer has availed a loan from multiple lenders, the reporting of it would be reflected in the credit bureau only after a 30-day period.
«With the reduction in this timeline to 15 days, creditors would be able to monitor accounts of borrowers in a timely manner,
