The Reserve Bank of India (RBI) has introduced major changes in collecting and sharing your credit information. These new changes are part of the ‘Credit Information Reporting Directions, 2025’, which aim to bring more transparency and accuracy to the credit reporting system. The goal is simple—make borrowing fairer and ensure banks get the latest data before giving you a loan.
In India, whenever you apply for a loan or credit card, the first thing that banks check is your credit report and credit score. These details help lenders understand your repayment habits and decide if you’re trustworthy enough to repay the loan. But where do these details come from? And how does the system know if you’ve missed an EMI or taken a new loan?
Now, check how the new rules change the credit reporting system and what it means for you.
What is a Credit Report and Credit Score?
A credit report is like a report card of your loan and credit history. It includes:
- All loans you’ve taken (personal, home, car, etc.)
- Credit card usage
- EMI payments (on time or missed)
- Overdue amounts
- Any loan defaults
- Your role as a guarantor for someone else’s loan
Based on this data, a credit score between 300 and 900 is assigned. The closer your score is to 900, the better your chances of getting loans at low interest rates.
Credit bureaus prepare this report based on the information that banks and financial institutions send them. In India, CIBIL, Experian, Equifax, and CRIF High Mark are the major credit bureaus.
What Has Changed Under RBI’s New Rules?
Earlier, banks used to send your credit data to credit bureaus only once a month. This meant that any changes in your credit activities (like new loans or EMIs missed) would take 30 to 40 days to reflect in your credit report.
Under the new rules, this will no longer be the case.
From now on, banks and financial institutions must update their credit data twice a month, by the 7th and 22nd. This will give credit bureaus near real-time data, helping lenders make faster and better lending decisions.
Here are the key updates:
1. Twice a Month Credit Updates
Now, credit bureaus will receive updates every two weeks. This will help banks see your most recent financial status and make lending decisions based on fresh data.
For example, if you missed an EMI on the 2nd of a month, banks will know this by the 7th and not a month later. This reduces the data blind spot that existed earlier.
2. Unified Credit Score Range for All Bureaus
Until now, different credit bureaus could show different score ranges, confusing both lenders and borrowers. With the new rule, all credit bureaus must use a standard score range of 300–900, making credit scores more uniform and easy to understand.
3. Linking Credit Data with Government IDs
Every borrower’s data is now linked with their Government ID—PAN, Passport, or Voter ID. This ensures every loan or default is traceable to the correct person.
It also includes your role as a loan guarantor. So, if someone you guaranteed defaults, it will also impact your credit score.
4. Data Can Be Shared with Non-Banking Entities (With Permission)
Now, even non-licensed financial companies (like fintech startups or credit scoring platforms) can access your credit data—but only if you give clear permission.
However, strict data safety rules will apply to such sharing to protect your personal information.
5. Banks Must Improve Their IT Systems
According to experts like Shubha Bhanu, BFSI lead at Microsave Consulting, banks will now need to upgrade their IT infrastructure to match the new RBI standards.
With more frequent updates, better data accuracy, and advanced systems, lenders can now offer more personalized and responsible loan services.
Why These Changes Matter to You
These new rules are not just technical updates—they directly affect your ability to take loans and credit cards.
Here’s how:
- Faster Credit Score Updates: If you pay a late EMI or close a loan, your credit score will now reflect the change much sooner.
- Real-Time Risk Evaluation: Lenders can now see your actual financial behaviour, reducing loan frauds and ensuring fair lending.
- Improved Loan Access: If your credit habits improve, you won’t need to wait a month for your score to go up. This can help you qualify for a loan much sooner.
- Fairer Credit Decisions: Uniform score ranges and verified data through IDs mean fewer chances of errors and mismatched records.
How You Can Stay Ahead
To keep your credit score healthy under the new system, follow these steps:
- Pay EMIs on Time: Delays now show up faster, so stay alert about payment dates.
- Avoid Taking Too Many Loans at Once: Frequent borrowing can lower your score.
- Check Your Credit Report Regularly: Since updates happen twice a month, checking once in 45–60 days is enough.
- Be Cautious as a Guarantor: If the borrower defaults, your score takes a hit too.
- Give Permissions Carefully: Only allow credit data sharing with trusted companies that follow RBI’s safety norms.
Final Thought: India’s Credit System is Getting Smarter
With these rules, RBI is pushing India’s credit reporting system into a more responsible, transparent, and accurate future. While banks must work harder to comply, borrowers will benefit from faster credit updates, fairer evaluations, and better access to credit.
Source: Reserve Bank of India, Microsave Consulting, CIBIL, Equifax, Experian, CRIF High Mark
Disclaimer: This article is meant for general awareness. Credit rules and data sharing norms may change. Always verify with your bank or official government portals before making financial decisions.
