RBI Made 5 New Rules Regarding CIBIL Score Check, Helping Customers to Get Loan

The Reserve Bank of India (RBI) just dropped some big news about CIBIL Scores. They heard people’s complaints and decided to tighten the rules. Now, if there’s an issue with your credit data, you gotta explain why. Plus, you need to spill the beans on how many complaints are on the credit bureau website. These new rules kick in on April 26, 2024, and the RBI gave a heads-up about it back in April. When you apply for a loan, banks check your CIBIL score, and the RBI has laid down five rules about it. Let’s break them down.

RBI Made 5 New Rules Regarding CIBIL Score Check

5 Major CIBIL Score Rules Made by RBI Recently

1. CIBIL Check Info Will Be Sent to Customer

The big bank said to all the credit info companies: when a bank or NBFC checks a customer’s credit report, make sure to tell the customer too. Just send a quick SMS or email. They decided this because lots of people were complaining about their credit scores.

2. Mandatory to Provide Rejection Reason

The Reserve Bank of India says if they say “no” to a customer’s request, they have to say “why.” They want to make it clear for the customer. They also made a list of reasons why requests get rejected and shared it with all the banks.

3. Free Credit Report Once a Year

The Reserve Bank of India says credit companies should give customers a free full credit score once a year. They just have to put a link on their website so customers can easily check it. It’s like a yearly report card for your credit.

4. Mandatory to Report Customers Before Reporting Discrepancies

The Reserve Bank of India says if someone’s about to miss a payment, the bank has to give them a heads-up before telling everyone about it. They’ll shoot a quick message or email to spill the beans. And get this, banks have their own superheroes, nodal officers, who swoop in to fix any credit score problems. It’s like a warning and a rescue team rolled into one.

Also read:

Bank Holidays November 2023: Banks to Remain Closed in November

5. Complaint Should be Resolved in 30 Days

The Reserve Bank of India has a rule: if a company doesn’t fix a customer’s problem within 30 days, they have to pay Rs 100 every day. The longer it takes, the more they pay. Banks get 21 days, credit bureaus get 9. If a bank takes too long to tell the credit bureau, they owe compensation. And if, even after 9 days, the problem isn’t fixed, the credit bureau has to pay up. It’s like a fine for taking too long to solve issues!

Find Your Daily Dose of NEWS and Insights - Follow ViralBake on WhatsApp and Telegram

Rishabh Sharma

Rishabh is an experienced content writer and editor, he is working for Viralbake to cover a diversified range of categories. His articles mainly focus on providing information, being a travel guide, educating others, and also making people aware of technology, after all, he is a technophile. When not writing he can be found gaming, watching movies, and travelling.

Related Articles

Back to top button

AdBlocker Detected

Please Disable Adblock To Proceed & Used This Website!