RBI mandates fortnightly credit information reporting

The Reserve Bank of India (RBI) mandated the frequency of credit information reporting to fortnightly basis as a measure to boost transparency in the system. This will be effective from January 1, 2025, the banking regulator said in notification.

Currently, credit institutions (CIs) are required to report the credit information of their borrowers to credit information companies (CICs) at monthly or such shorter intervals as mutually agreed between the CI and CICs.

While announcing the monetary policy review Shakitkanta Das, Governor, RBI said, “It is proposed to increase the frequency of reporting of credit information to a fortnightly basis or at shorter intervals. Consequently, borrowers will benefit from faster updation of their credit information, especially when they repay their loans. The lenders, on their part, will be able to make better risk assessments of borrowers.”

Experts says this will lead to better underwriting decisions by the lenders while ensuring faster resolution of consumer disputes. Rajesh Kumar, MD & CEO, Trans Union CIBIL said, “CICs will be able to update credit records faster and this will translate into more updated data being available for making informed lending decisions by lenders.”