Lenders may be required to submit credit information every week instead of the current fortnightly basis to credit information companies (CICs) in view of their increasing reliance on credit information reports in credit underwriting processes, reported Business Line.
One of the main reasons for this move may be to prevent fraudsters from exploiting the time lag between a loan turning bad and its reporting to a CIC.
During the interim, unscrupulous borrowers can approach other credit institutions (CIs) for loans as their asset classification status has not been updated with the CIC.
Daily reporting?
It is even believed that down the line, the banking regulator may even ask banks to move to daily reporting of credit information. “It is proposed to transition to weekly credit information submission by Credit Institutions (CIs) to CICs,” as per the Draft Reserve Bank of India (Credit Information Reporting) (1st Amendment) Directions, 2025.
The draft amendments also mandate measures to facilitate faster data submission and error rectification by CIs. Further, to facilitate aggregation of credit information by CICs, it is proposed to capture Central Know Your Customer (KYC) number in a separate field in the reporting format of consumer segment.
Bhavesh Jain, MD and CEO, TransUnion CIBIL, said: “The RBI’s draft proposal to move from fortnightly to weekly credit reporting is a progressive step that will strengthen India’s credit information ecosystem. More frequent reporting will ensure credit records are updated promptly, giving lenders sharper insights and consumers’ confidence that their information is accurate.”
He said that the directions also create an opportunity for the industry to invest in advanced technology and stronger processes, making the ecosystem more agile and future-ready.
“The result will be improved transparency, more responsive systems and stronger trust between borrowers and lenders….we are committed to working with all stakeholders to build a more resilient and consumer-focused credit ecosystem for the country.”
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