impact of the new rules

This change will make the process of calculating and updating credit scores faster and more accurate. Earlier, delays in updating loan repayment information could have a negative impact on borrowers’ credit scores, causing problems in getting new loans. Now the 15-day reporting period will eliminate this problem and borrowers will soon see an improvement in their credit scores.

What does 15-day reporting mean?

Credit score will get updated quickly – Now if a person makes loan or credit card payments on time, his credit score will improve quickly.

Banks will get accurate data – Banks and financial institutions will be able to take decisions based on more accurate and recent credit information before disbursing loans.

Default and loan fraud will be controlled – Earlier there could be a delay of up to 40 days in monthly reporting, due to which banks could take wrong decisions. Now this process will be faster and the financial behavior of borrowers can be monitored better.

Ban on Evergreening – The new rule will also curb ‘Evergreening’, where a new loan is taken to repay the old loan, and the loan will be properly evaluated.

Credit score categories

Credit scores range from 300 to 900, and a score above 700 is considered good.

Score – Category

300–579 bad

580–669 average

670–739 good

740–799 very good

800+ Best

Benefits of the new rules

Faster credit score update – Borrowers who make their payments on time will get a better credit score soon.

Decision making ability of banks will increase – Now banks will get updated data within 15 days instead of looking at old data. Check your credit score regularly and immediately lodge a complaint with the credit bureau to rectify any mistakes.

The post RBI issued new rules regarding CIBIL score, know how you can improve your CIBIL first appeared on Rightsofemployees.com.

This mistake is payment default. Till now, a total of 6 rules have been made by the Reserve Bank on CIBIL, which will directly benefit you. Let us know about these 6 rules and understand how you will benefit from them.

1- CIBIL will be updated every 15 days

According to this new rule, now the credit score of the customers will be updated every 15 days. This rule will be effective from January 1, 2025. The CIBIL score of the customers can be updated on the 15th of every month and at the end of the month. This will have the advantage that the CIBIL score of the people will be updated every 15 days and banks will be helped in taking the right decision in giving loan to anyone. At the same time, people will also get a chance to improve their bad CIBIL soon and people will also benefit.

2- Information regarding CIBIL check will have to be sent to the customer

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

3- It is necessary to give the reason for rejecting the request

According to the Reserve Bank of India, if a customer’s request is rejected, it is necessary to tell him the reason for it. This will make it easier for the customer to understand why his request has been rejected. It is necessary to make a list of the reasons for rejecting the request and send it to all credit institutions.

4- Give free full credit report to customers once a year

According to the Reserve Bank of India, credit companies should provide free full credit score 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. This will let customers know their CIBIL score and complete 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 about to default, it is necessary to inform the customer before reporting the default. Loan giving institutions should share all the information by sending SMS/e-mail. Apart from this, banks and loan giving institutions should appoint a nodal officer. The nodal officer will work to solve the problems related to credit score.

6- 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 is, the later the complaint is resolved, the higher the fine will have to be paid. The loan disbursing institution will get 21 days and the credit bureau will get 9 days. If the bank does not inform the credit bureau within 21 days, then the bank will have to pay a penalty. If the complaint is not resolved even after 9 days of the bank’s information, then the credit bureau will have to pay a penalty.

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The post CIBIL score Rule: RBI has made these 6 rules on CIBIL score, everyone will benefit, just don’t make this mistake first appeared on Rightsofemployees.com.