The RBI has introduced a new 15-day credit reporting rule, effective from January 1, 2025.

Banking & Finance

The Reserve Bank of India (RBI) has introduced a new rule for credit reporting. It now requires all lenders to update credit bureau records every 15 days instead of the previous monthly update cycle. This change is effective from January 1, 2025.


      - The goal of this change is to improve the accuracy of credit scores and ensure that a borrower’s financial activities are reflected quickly.

      - The RBI had announced this change in August 2024, giving lenders and credit bureaus time to switch to the new 15-day cycle and update their systems and processes.

      - The new 15-day credit reporting cycle will prevent loan "evergreening" by enabling lenders to identify debt cycles early and provide faster updates to credit scores, ensuring accurate and timely information for financial decisions.

Main Point :-   (i) The new 15-day credit reporting cycle ensures up-to-date credit histories, enabling timely improvements in credit scores for consistent borrowers and faster access to loans for those with a good repayment record.

      (ii) This change will help borrowers understand their financial health better, as updates to their credit scores will be reflected quickly.

(iii) Regular updates will help lenders manage risks more effectively by giving them timely information about a borrower’s financial behavior, which can help reduce the chances of defaults.
About RBI

Governor : Sanjay Malhotra
Headquarter : Mumbai
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