What is CIBIL? A CIBIL score, or credit score, is required to obtain a loan from a bank. If your CIBIL score is below 750, banks may hesitate to grant you a loan. However, if it is above this level, the interest rate may be lower.
RBI Credit Score Guidelines: When you apply for a loan from any bank, the bank first checks your CIBIL score. A good CIBIL score can lead to a lower interest rate. A CIBIL score above 750 can lead to a loan at a reasonable interest rate. Currently, CIBIL updaters like CRIF High Mark and Equifax update your CIBIL score every 15 days. However, the Reserve Bank of India (RBI) has now made a significant decision regarding this issue. According to draft guidelines issued on September 29, 2025, your credit score will be updated weekly starting in April 2026.
Scores will be updated on these 5 days of every month
According to the new regulations, CIBIL companies will update your complete credit data on the 7th, 14th, 21st, 28th, and the last day (30th or 31st) of each month. This means your score will be updated at least five times a month. If the bank and CIBIL company can update your score every three or four days, it can be weekly.
How will banks send data?
Banks will have to submit all data up to the last date of every month to CIBIL companies by the 3rd of the following month. For example, the entire data for October 31, 2025, must reach by November 3, 2025. However, for the remaining weeks, i.e., 7th, 14th, 21st, and 28th, only new or changed data is to be sent; this is called 'incremental data'. This will include data related to newly opened accounts, old loans/cards closed, any EMI paid, address changed, and loan status. This data will need to be sent within just two days. That is, data for the 7th needs to be submitted by the 9th, and data for the 14th needs to be submitted by the 16th.
Delays will be reported to the RBI!
If a bank fails to submit data on time, the CIBIL company will have to file a complaint against that bank on the RBI's DAKSH portal every six months (on March 31st and September 30th). This means that the bank will now be monitored for CIBIL data.
What's your benefit?
Paying EMIs on time will increase your score within 7 days; previously, it took 15-30 days for it to update. Closing an old loan will also provide immediate benefits, making it easier to obtain a new loan. Correcting incorrect entries (that weren't yours) will improve your score. The bank will know your latest status, so the chances of rejection are lower. The impact of fraud or a stolen card will also be removed quickly.
Good news for banks and NBFCs:
Banks will know in advance whether a customer has taken a new loan elsewhere or defaulted. This will reduce risk and allow them to make better loan decisions. Overall, loan processing will speed up. The RBI has recently released a draft of the new regulations. Feedback has been sought from all banks, NBFCs, and CIBIL companies. The new regulations are expected to be implemented by April 2026.
PC:Zeenews
