The Reserve Bank of India (RBI) is bringing a major change for borrowers starting January 2026.
Credit scores, which were earlier updated every 30 to 45 days, will now be updated every 14 days.
This means borrowers no longer have to wait long to see the impact of loan repayments, prepayments, or closures on their credit reports.
How the New Rules Benefit Borrowers
Under the new rules, banks and NBFCs must submit credit information to agencies like CIBIL, Experian, Equifax, and CRIF Highmark at least twice a month starting January 1, 2026. Faster updates mean:
Customers planning new loans can access funds quicker.
Banks can better assess borrowers’ risk.
Loan prepayments and closures reflect promptly, improving credit scores faster.
A credit score can still fluctuate depending on factors like taking new loans, paying EMIs on time, defaults, or errors in bank reports.
Faster updates ensure these changes are reflected more quickly.
Alerts and Protection Against Fraud
RBI has also made it mandatory for banks and financial companies to send SMS or email alerts whenever a credit report is accessed.
This helps customers detect any fraudulent loan attempts in their name.
Additionally, no bank or company can declare someone a defaulter without informing them.
Customers will receive alerts before any information is submitted to a credit bureau, ensuring transparency and security.
Compensation for Delays
If a bank or credit bureau fails to resolve a complaint within 30 days, the customer is entitled to ₹100 per day as compensation.
Similarly, any corrections requested in credit reports must be completed within 30 days, giving customers faster control over their credit information.
