ENA Economy 2025-01-08 16:29:26 <p><span style="font-size:14px"><strong>New Delhi, Jan 8 (KNN)</strong> The Reserve Bank of India (RBI) has announced new regulations requiring all lenders to update credit bureau records every 15 days, starting January 1, 2025, marking a significant shift from the current monthly reporting system. This initiative aims to create a more dynamic and accurate credit information framework.</span></p> <p><span style="font-size:14px">The new directive is designed to establish standardised protocols for credit information reporting and dissemination while ensuring the confidentiality and security of sensitive financial data. </span></p> <p><span style="font-size:14px">The framework also includes provisions for consumers to access their credit information and seek redress for credit reporting-related grievances.</span></p> <p><span style="font-size:14px">Under the current monthly reporting system, missed payments or defaults can take up to 40 days to appear in credit records, potentially leading to outdated information and imprecise creditworthiness assessments. </span></p> <p><span style="font-size:14px">The new 15-day reporting cycle will enable faster reflection of both timely payments and defaults in credit scores, allowing lenders to make decisions based on more current financial behavior.</span></p> <p><span style="font-size:14px">The RBI has also addressed concerns regarding Credit Information Companies (CICs) sharing credit information with non-Specified Users (SUs) based on individual consent. Given the sensitive nature of this data and potential misuse risks, the central bank has directed CICs to implement appropriate safeguards. </span></p> <p><span style="font-size:14px">Additionally, CICs will be required to send SMS or email alerts to customers when their Credit Information Reports (CIR) are accessed by SUs, provided the customer's contact details are available.</span></p> <p><span style="font-size:14px">This enhanced reporting system is expected to benefit diligent borrowers, as positive payment behavior will be reflected more quickly in their credit scores. </span></p> <p><span style="font-size:14px">Simultaneously, lenders will have access to more current credit information, enabling them to make more informed lending decisions and better assess credit risks.</span></p> <p><span style="font-size:14px"><em><strong>(KNN Bureau)</strong></em></span></p> 40568 https://knnindia.co.in/news/newsdetails/economy/credit-bureau-records-to-be-updated-every-15-days-rbi 2025-01-08 16:29:26 knnindia.co.in