RBI Issued 5 new rules regarding CIBIL score: Should Know before getting loan

CIBIL Score Important Update: Reserve Bank of India (RBI) has given an important update regarding CIBIL Score. Many rules are made under it. After many complaints about credit scores, the central bank tightened the rules.

Reserve Bank of India (RBI) has given an important update regarding CIBIL score. Many rules are framed under it. After many complaints about credit scores, the central bank tightened the rules. Under this, the reason for not correcting the data in the credit bureau will also have to be given and it will also be mandatory to mention the number of complaints on the credit bureau website.

Apart from this, the Reserve Bank of India has formulated many rules. The new rules will come into effect from 26 April 2024. Last April itself, RBI had warned about the implementation of such rules. Every time a customer applies for a loan, their CIBIL score is checked by banks. Under this the Reserve Bank has made a total of 5 rules.

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Reserve Bank of India 5 new rules regarding CIBIL score:

1. Customer need to send information about CIBIL check:

The central bank has told all credit companies that when a bank or NBFC checks a customer’s credit report, it is necessary to send information to that customer. This information can be sent via SMS or email. In fact, there were many complaints regarding the credit score, due to which the Reserve Bank of India took this decision.

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2. It is necessary to give a reason for rejecting the request:

According to the Reserve Bank of India, if any request of the customer is rejected, it is necessary to state the reason for the same. This makes it easier for the customer to understand why his request was rejected. It is important to prepare a list of reasons for rejection of the request and send it to all credit institutions.

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3. Give customers a complete credit report once a year for free:

According to the Reserve Bank of India, credit companies must provide a free full credit score to their customers once a year. For this, the credit company needs to display a link on its website so that customers can easily check their free full credit report. Along with this, customers will know their CIBIL score and complete credit history once a year.

4. It is necessary to inform the customer before reporting the default:

According to the Reserve Bank of India, it is important to inform the customer before reporting the default if the customer is going to default. Lending institutions should share all information by sending SMS/e-mail. Apart from this, banks and lending institutions should appoint nodal officers. Nodal officers work to resolve credit score related issues.

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5. Complaint should be resolved within 30 days, otherwise Rs.100 per day fine:

If the credit company does not resolve the customer’s complaint within 30 days, it will have to pay a penalty of Rs 100 per day. That is, the more late the complaint is resolved, the higher the penalty will be. In this, 21 days are reserved for the loan disbursing agency and 9 days for the credit bureau.
If the bank does not notify the credit bureau within 21 days, the bank will have to pay compensation. If the complaint is not resolved after 9 days of notification by the bank, the credit bureau will have to pay the damages.