Credit Score New Rules Announced by RBI

RBI Update: Reserve Bank of India has taken a big decision keeping in mind the interest of the customers. 

Credit score report 

RBI took the right decision

The decision has been taken by the central bank to improve customer service and complaint redressal process of lending institutions and credit reference agencies.

Whenever a bank or NBFC takes a credit information report (CIR) of a person, the Central Bank has directed all credit reporting agencies to inform the person about it through SMS and email.

Why did RBI take this decision?

The decision has been taken by the central bank to improve the customer service and complaint redressal process of lending institutions and credit reference agencies. Nowadays, after one applies for a loan in a bank, it often happens that customers receive offers and calls for loans from other banks.  

The reason behind this is that the credit reporting agency shares the credit report of the person with the banks. Even the person applying for the loan does not know about this information.

Now customers can get a free credit report

In a press release issued by the Reserve Bank, credit institutions are required to provide a free credit report to customers (who have a credit history) once in a calendar year. For this, banks and companies should also provide a link on their website. RBI has said that through this facility the customer can get free credit report easily.

A circular for these new rules was issued by the RBI on October 26. These rules shall come into force six months after the publication of the circular.

If the customer's complaint is not resolved within 30 days, there is a penalty

The Reserve Bank of India has been making several favorable announcements for customers in recent times. Now another announcement has been made by RBI which will benefit the borrowers. The RBI has told lending institutions that if the customer's complaint is not resolved within 30 days, they will have to pay a compensation of Rs 100 per day.

Reserve Bank of India has tightened rules for CIBIL, Experian and all other credit reporting agencies. The central bank is taking strict action against companies that engage in credit score related transactions.

 

The RBI has said that it is necessary to send an alert message when a customer's credit score is in question. Companies should send alerts to customers through SMS/email. If the complaint is not resolved within 30 days, the companies will have to pay a fine of Rs.100 per day.