RBI New Rules: The Reserve Bank of India has made some very strong changes in the Credit Score rules for customers so that it becomes more convenient for them and also secures their interests.
The new regulation is aimed at making the loan process simple and more understandable for customers regarding their credit health.
Main Highlights of the RBI New Rules:
Frequent Credit Score Updates:
- Now, every 15 days the customer’s credit score will also be updated with the new guidelines. These updates will happen on the 15th of every month and at the end of the month, which will help customers stay in touch with their present credit status.
Mandatory Notifications:
- All banks and NBFCs will have to notify customers whenever they check their credit report. This will be done via SMS or email to keep customers updated by notifying them about their credit status.
Transparency in Loan Rejections:
- If a customer’s loan application is declined, clear reasons will need to be provided from now on by banks. This will thereby empower the customers to be able to take action to increase their creditworthiness. Besides, credit companies are required to provide a full credit report free of charge to customers in a year through a link specific to that on their website.
Notice Ahead of Defaults on Loans:
- Before defaulting on a loan, the financial institution will be required to give notice to the customer and also use SMS or email. Moreover, banks should have the facility of appointing a nodal officer to help the customers regarding credit score-related complaints.
Quick Redressal of Grievances:
- The customer complaints should be resolved within 30 days. If not, then there will be a fine of ₹100 per day. Banks will have to reply in 21 days, while credit bureaus will send their responses in nine days.
Significance of These Changes:
- RBI’s new guidelines will level a major step toward customer interest and penetrate transparency in the credit score system. These new rules in favor of fair updates, reporting, and a quick resolution will offer customers much better services in finance. This will cause a big transformation in the financial sector accordingly into a customer-centric and credible one.
Now customers can control their credit health better with the new changes that make managing loans easier and enhance financial standing. The proactive approach of RBI is visible in nurturing a fairer and transparent financial ecosystem.