What are the 5 new rules introduced by the RBI for CIBIL scores?

If you’ve ever taken a loan or used a credit card, you’ve likely come across the term CIBIL score. Simply put, it’s your credit score – a 3-digit number between 300 and 900. It tells lenders how trustworthy you are with credit. But in recent times, the Reserve Bank of India (RBI) has made some changes that could impact how this score is reported and used.

Let’s break down the 5 new rules introduced by the RBI for CIBIL scores and understand what they mean for you.

Also Read: Why is Credit Score Important for Loans?

Why Your CIBIL Score Matters More than Ever

In India, the CIBIL score is crucial for getting any kind of loan – personal, education, car, or home. A high score means better chances of approval, lower interest rates, and faster disbursals.

But there have been many cases where people didn’t even know their score had dropped. Some were shocked to find errors in their reports, while others didn’t get clear answers when their loan applications were rejected.

To fix this, the RBI's new rules for CIBIL scores have been rolled out. These changes are focused on improving fairness, accuracy, and transparency.

1. Free Access to your Credit Report

Earlier, people had to pay to access their full credit report. Not anymore.

Now, everyone in India has the right to get one free credit report per calendar year from each credit bureau.

This includes the Credit Information Bureau (India) Limited – better known as CIBIL.

Here’s why this matters:

• You can spot errors in your report early.
• You can track if someone has wrongly listed missed payments.
• It helps you stay on top of your financial health.
• This rule ensures that every individual gets equal access and no one is left in the dark.

2. Better Complaint Redressal System

If you find a mistake in your report, you now have more power to fix it. One of the biggest changes under the RBI CIBIL score rules is that institutions must act fast.

• Institutions must now resolve disputes within 30 days.
• Credit bureaus must notify you of any corrections or updates.
• If a complaint isn’t resolved in time, the issue has to be escalated automatically.
• This improves transparency and prevents unnecessary delays for the borrower.

3. Clear Reasons for Credit Rejection

This one is huge. Many borrowers used to get rejected without understanding why.

Under the RBI guidelines for CIBIL score, lenders must now provide a clear reason when they deny you a loan or credit based on your credit score.

This includes:

• Which part of your credit report led to the rejection?
• What can you do to improve your score?
• It brings much-needed clarity and helps people work towards improving their creditworthiness.

4. Faster Updates to your Credit Record

Earlier, updates to your credit score after repayment took time. Sometimes months.

• The RBI's new rules for CIBIL score have changed.
• All institutions must now report their repayment data to credit bureaus within 21 days.
• If you clear a loan, your record should reflect it quickly.
• Faster updates help you boost your score faster.
• This can really help if you’re planning to apply for a loan soon after clearing existing debts.

5. Uniform Credit Scoring Practices

This is more technical, but very important. The RBI has told credit bureaus to standardise their scoring methods. This means that:

• All credit information companies (CICs) must follow a consistent scoring model.
• Lenders cannot discriminate based on which credit bureau they use.
• This ensures fairness for everyone, no matter which lender or credit bureau you deal with.

What This Means for You

These changes under the RBI guidelines for CIBIL score are a big win for ordinary borrowers. They ensure that:

• You have better control over your financial reputation.
• You get timely access to accurate credit data.
• You’re not caught off guard by surprise rejections.

If you’ve been denied a loan or credit card in the past, it might be time to recheck your report. With the RBI CIBIL score rules now in place, the system is more transparent and user-friendly than ever before.

Also Read: Decoding RBI Guidelines: Impact on Home Loans

The Bottom Line

The RBI new rules for CIBIL score are built to protect you – the consumer. Whether you're planning to take a home loan, buy a vehicle, or start a business, these rules make the credit ecosystem more reliable and fair.

Now that you have a clearer picture, stay on top of your score, fix any errors, and use your credit responsibly. The power is in your hands now.

Planning your next big purchase or a personal loan? Make sure your CIBIL score is up to date, and apply for the loan to get started on your financial journey.

Moreover, if you want to check your eligibility for a loan, use an online loan eligibility calculator tool. These tell you just how much you can borrow when you apply for a loan.

FAQs

Q.1. What is the new rule of the CIBIL score in RBI?

A. The new rule of CIBIL score introduced by the RBI on January 1st, 2025, states that CIBIL scores will be updated every 15 days instead of monthly. This change ensures that any changes in your credit behaviour are reflected immediately in your score.

Q.2. What is the rule of the CIBIL score?

A. The CIBIL score basically ranges from 300 to 900. According to the range, a CIBIL score of 300 is considered poor, and 900 is considered the best by lenders for creditworthiness. In other words, if your CIBIL score is closer to 900, financial institutions will easily lend you money when you apply for loans.

Q.3. What factors affect CIBIL score?

A. Several factors influence your CIBIL (Credit Information Bureau of India Limited) score, which indicates your creditworthiness. Based on this score, a lender decides if you can borrow money or not from them and, if you can, then at what rate of interest. Key determinants of this score are your payment history, credit utilization ratio, credit mix, the number of credit inquiries, etc.

Q.4. Who regulates CIBIL?

A. Under the Credit Information Companies (Regulation) Act, 2005 (CICRA), CIBIL, along with other Credit Information Companies (CICs) in India, is regulated by the Reserve Bank of India (RBI).

Q.5. Can inquiries affect your CIBIL score?

A. Yes, inquiries can affect your CIBIL score. Hard inquiries can affect your CIBIL score adversely. This happens when a lender pulls your credit report to assess your loan application. This can temporarily lower your CIBIL score. Even though the impact of a hard inquiry is usually short-lived, multiple inquiries within a short period of time can have more solid consequences.

Disclaimer:

The contents of this article are for information purposes only and not a financial advisory. The information is subject to update, revision, and amendment and may change materially. The information is not intended for distribution or use by any person in any jurisdiction where such distribution or use would be contrary to law or regulation or would subject Godrej Capital or its Affiliates to any requirements. Godrej Capital or its Affiliates shall not be responsible for any direct/indirect loss or liability incurred by the reader for making any decisions, financial or otherwise based on the contents and information mentioned. For more information , please visit www.godrejcapital.com