New RBI Rule Mandates 15-Day Credit Updates: What You Need to Know
RBI's new rule mandates lenders to update credit data every 15 days from January 1, 2025, and If credit report errors are not resolved within 30 calendar days, the lender must pay you Rs. 100 per day
New RBI Rule – New RBI Rule Mandates – RBI Rule Mandates – RBI Rule – Credit Updates – New RBI Rule Mandates 15-Day Credit Updates – taxscan
New RBI Rule – New RBI Rule Mandates – RBI Rule Mandates – RBI Rule – Credit Updates – New RBI Rule Mandates 15-Day Credit Updates – taxscan
If you use credit cards, have active loans, or are working to improve your credit score, the Reserve Bank of India (RBI) has just introduced a rule that could hugely impact your financial journey.
Starting January 1, 2025, all lenders including banks, NBFCs, and other financial institutions will be required to report your credit data to credit bureaus like CIBIL and Experian at least twice a month. This is a huge shift from the current system where updates were made only once a month, regardless of how active your credit usage was.
What is a Credit Score?
A credit score is a 3-digit number (from 300 to 900) that reflects how good you are at repaying loans. It is issued by credit bureaus like CIBIL, Equifax, CRIF High Mark, and Experian. The most commonly referred to score in India is the CIBIL Score.
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Score Ranges:
| Score | Rating |
| 300–579 | Poor |
| 580–669 | Average |
| 670–739 | Good |
| 740–799 | Very Good |
| 800–900 | Excellent |
A score above 700 is generally considered safe and helps you get loans easily and at lower interest rates.
The New Credit Reporting Rule: What’s Changing?
Old Rule: Banks and NBFCs update your credit data once a month.
Under RBI Circular DoR.FIN.REC.No.32/2024-25 dated August 8, 2024, lenders must update borrower credit data fortnightly on the 15th and last day of every month. Credit Information Companies (CICs) are also required to process this data faster within 5 calendar days instead of the earlier 7-day window.
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And, if a customer’s complaint about incorrect credit reporting is not resolved within 30 calendar days, the lender must compensate them with Rs. 100 per day of delay, as directed by RBI.
Why is this Good News for You?
1. Your Timely Payments Will Show Faster
Paid your credit card or loan on time? You won’t have to wait a full month to see a credit score improvement. It’ll show up sooner — helping you apply for a new loan or get a better credit limit.
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2. Your Credit Report Will Be More Accurate
Banks will rely on fresh data, not old or outdated information, to decide whether to give you a loan.
3. Missed Payments Will Also Be Reflected Faster
If you miss a payment, it will show up more quickly too — so timely repayment is more important than ever.
4. Better Monitoring for First-Time Borrowers
If you're new to credit, your responsible use will be rewarded faster. It will also help prevent misuse or fraud.
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5. Ban on “Evergreening” of Loans
The RBI rule helps stop a bad practice where people take new loans to repay old ones (called evergreening). Lenders will now spot this faster.
What if there's a Mistake in My CIBIL Report?
If your credit report has errors (like showing a missed payment you didn’t actually miss), you can file a complaint with the credit bureau or the lender.
New Rule: If the issue is not resolved within 30 calendar days, the lender must pay you Rs. 100 per day as compensation.
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What You Should Do Now
- Pay your dues on time: This is the most important factor for a good score. Even a single missed EMI or credit card bill can hurt your credit.
- Keep credit utilization low: Use less than 30% of your credit limit. For example, if your credit limit is Rs. 1,00,000, try not to spend more than Rs. 30,000 regularly.
- Avoid frequent loan applications: Every time you apply for credit, a lender checks your report — too many checks can reduce your score.
- Check your credit report regularly: Visit sites like cibil.com or experian.in to check your score. You are entitled to one free credit report per year from each bureau.
- Dispute errors immediately: If you find incorrect entries, raise a dispute through the credit bureau’s website. With the new rules, errors will be corrected faster.
Who Does This Apply To?
The new RBI rule applies to:
- All Commercial Banks
- All NBFCs (like Bajaj Finance, HDFC Ltd, etc.)
- Regional Rural Banks
- Urban & Co-operative Banks
- Housing Finance Companies
- Asset Reconstruction Companies
- Credit Information Companies (CIBIL, Equifax, etc.)
Conclusion
The RBI’s 15-day credit update rule is a major boost for disciplined borrowers and a wake-up call for defaulters. With faster updates, your credit score will now truly reflect your real-time financial behavior.
If you’ve been paying on time and managing your credit responsibly, this is your moment. And if not, there’s never been a better time to start.
Start preparing now — the rule is already in effect from January 1, 2025.
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