The Reserve Bank of India (RBI) has tightened its reporting framework once again, marking another shift in how frequently credit information is shared
across the financial system. In its latest announcement on 4 December, the central bank confirmed that banks must now update credit information reports every week, moving away from the fortnightly cycle introduced just a year ago. The central bank emphasised that the credit ecosystem now relies heavily on the accuracy and freshness of data. According to the RBI, “Given the increasing reliance of CIs (credit institutions) on credit information reports (CIRs) in credit underwriting processes, it is imperative that the CIRs provided by CICs reflect more recent information.” The regulator noted that a review showed the need for more frequent reporting, leading to its decision to shift to weekly data submission and to streamline correction processes. A Quick Timeline of Changes For years, banks updated credit information only once a month. That changed on 8 August 2024, when the RBI instructed institutions to switch from monthly to fortnightly reporting. Now, the regulator has advanced the cycle even further — moving from twice a month to four times per month. What the New Guidelines Require Under the revised framework, banks must follow a strict reporting schedule: A. Credit information must be submitted on the 9th, 16th, 23rd, and the last day of each month. B. A full file containing all credit records as of the month-end must be provided to credit information companies (CICs) by the 5th day of the following month. C. This full file must include both active accounts and those where the lender-borrower relationship ended since the last reference date. D. For the other reporting dates, 9th, 16th and 23rd, banks must submit only incremental accounts, and these must be sharedwith CICs within four days. How These Rules Were Finalised The RBI had floated a draft of these directions on 29 September, seeking feedback from the public and industry stakeholders. The responses were evaluated and incorporated before the final guidelines were issued. As a result, the regulator released 10 Amendment Directions, each tailored to different categories of financial institutions, including commercial banks, small finance banks, local area banks, rural and urban cooperative banks, non-banking financial companies, asset reconstruction companies and others. What This Means For Borrowers The move to weekly updates means consumers may now see changes in their credit scores reflected much sooner, whether due to timely repayments, new loan applications, or closed accounts. Faster reporting is expected to make underwriting more accurate, while also helping borrowers track and correct discrepancies more quickly. With these changes, the RBI continues its push for greater transparency and responsiveness in India’s credit ecosystem, ensuring that credit data is as current as the financial decisions people make every day.
