RBI New Credit Reporting Rules require Weekly CIBIL Updates: Faster Loan Sanctions & EMI Payment Confirmations
The reforms to the loan sanction processes as proposed by the central bank are slated to encourage more citizens to avail loans.
The Reserve Bank of India (RBI) has proposed a major enhancement for India’s credit ecosystem, issuing draft guidelines mandating weekly updates of credit information by all Credit Information Companies (CICs), easing the loan-sanction process and ensures quicker reflection of Equated Monthly Instalment (EMI) in credit databases.
Earlier, credit scores were updated on a fortnightly or monthly reporting cycle, but the new draft proposes that CICs such as TransUnion CIBIL, CRIF High Mark and Experian be used to update credit scores and reports every 7 days.
The updates must specifically occur on the 7th, 14th, 21st, 28th and the last day of every month, ensuring that borrowers’ repayment behaviour is reflected with far greater speed and accuracy than before.
The reforms, which are scheduled to take effect from 1 April 2026 represent one of the most significant upgrades to India’s credit reporting framework in recent years.
Banks and NBFCs will play a central role in this process. As per the guidelines, lenders must furnish the full data file for every borrower by the 3rd day of each month, capturing the status as on the last day of the preceding month. For weekly cycles, banks are mandated to submit incremental updates such as new loan accounts, closures, EMI payments, changes in loan classification and demographic corrections within two days of each information being reported.
Delays by lenders must be reported by CICs on the RBI’s DAKSH supervisory portal every half-year.
Borrowers to Benefit?
The regulatory overhaul is in many ways, set to work for the benefit of borrowers seeking to avail loans. Currently, corrections in credit reports often take several weeks to be reflected, often leaving consumers unable to access loans even after clearing dues or correcting inaccuracies.
Since the new system mandates that errors must be rectified within a week, EMI repayments will begin reflecting promptly, thereby improving borrowers’ credit scores faster as well. This is especially useful for borrowers who rely on credit score–based interest pricing to benefit off quicker approvals and cheaper loan terms.
Penalties for Incorrect Reporting
In a historic first, the RBI has introduced financial penalties for incorrect or delayed credit reporting by CICs - addressing long-standing grievances of consumers who faced loan rejections or higher interest rates due to incorrect data being retained by the CICs and provided to lenders.
All things considered, the new draft rules are positioned to make credit availability and lending highly efficient. Using the help of accurate and up-to-date credit profiles, lenders will be better placed to assess risks, while borrowers will experience faster EMI confirmations, quicker score improvements and reduced worries due to outdated data.
Borrow responsibly. Repay timely.
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