Banks usually check a customer’s CIBIL score but don’t inform the customer about it. However, under the latest RBI rules, if a bank, NBFC, or credit information company checks your CIBIL report, they must now inform you via email or SMS.
If your loan or request is rejected, the bank or NBFC must clearly explain the reason. Earlier, many banks rejected loan applications without giving any reason, but now they are required to provide the actual cause.
This helps customers understand the issue and fix any mistakes. RBI has also asked all credit institutions to send a monthly list explaining why requests were rejected.
Full Credit Report and Defaulter Information
According to the new RBI rules, customers can get their full credit report once a year for free. Credit institutions must provide access to the full report, usually through a link on their website. This helps customers stay updated and make better decisions about loans.
Before declaring a customer as a defaulter, banks must inform the loan holder first. Banks can appoint special officers to handle CIBIL-related problems, and no customer issue should remain unresolved.
Resolving Complaints and RBI’s Actions
If customers face any problems with their CIBIL score, banks and credit bureaus must resolve these quickly. Banks have 21 days to fix complaints or notify the credit bureau.
The credit bureau then has 9 days to resolve the issue. If they delay, they will be fined Rs. 100 per day.
Banks, NBFCs, and credit bureaus must also share the number of customer complaints received and how many were settled on their websites. If they fail to do so or ignore complaints, RBI will take strict action.