What are the new RBI rules regarding credit scores?

The RBI now requires banks and NBFCs to inform customers via SMS or email when they check a customer’s credit report.

What happens if a bank doesn’t address a customer’s complaint on time?

If a bank fails to resolve a complaint within 21 days, the RBI will charge the bank Rs 100 per day until the issue is resolved.

Will banks provide reasons for loan rejection?

Yes, banks must now give specific reasons for rejecting a loan application so customers can address the issues.

What happens after 7 years of not paying debt in India?

After 7 years of non-payment, the debt may be written off by lenders but still affects credibility.

What is the new rule for CIBIL score in RBI?

RBI’s new rule requires banks to notify customers via SMS or email when their CIBIL report is checked.

What is the 60/40 rule of RBI?

The 60/40 rule divides investment into 60% equity and 40% debt for portfolio balance.

What is rule 7 of the RBI?

Rule 7 of RBI covers regulations related to financial institutions’ lending and reporting practices.

What is the 7 year rule of CIBIL?

The 7-year CIBIL rule removes loan or credit history after 7 years from your credit report.

Is it true that after 7 years your credit is clear in India?

Yes, most credit issues get cleared automatically after 7 years if no new defaults occur.

What is the 2 3 4 rule for credit cards?

The 2-3-4 rule suggests using only two credit cards, paying bills in three weeks, and keeping usage below 40%.

What is the government decision on CIBIL score?

The government directed banks to inform users whenever their CIBIL score is checked.

Is it true that after 7 years your credit is clear in India?

Yes, most credit issues get cleared automatically after 7 years if no new defaults occur.

What is the 2 3 4 rule for credit cards?

The 2-3-4 rule suggests using only two credit cards, paying bills in three weeks, and keeping usage below 40%.

What is the government decision on CIBIL score?

The government directed banks to inform users whenever their CIBIL score is checked.

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What Is CIBIL Score? RBI Rules And How They Affect Your Credit ?

Q: What is a credit score?

A credit score measures your creditworthiness, used by banks and financial companies to decide whether to approve loans.

Samridhi

Author

Updated: 28-10-2025 at 3:30 PM

The central bank has notified all credit issuing companies that a bank or NBFC checking a customer’s credit report (Free CIBIL Score) must send the information to the customer. This information can be sent through SMS or email. The Reserve Bank of India has taken this decision because there have been many complaints about the credit score.

In this article, you will get the detailed information about the CIBIL Score, its new rules, CIBIL score range, full form and much more.

Overview

Below is a quick snapshot of the key details about the RBI’s new rules on CIBIL Score to help you understand its purpose and impact.

Particulars	Details
Scheme/Policy Name	RBI’s New Guidelines on CIBIL Score Reporting
Implemented By	Reserve Bank of India (RBI)
Objective	To ensure transparency and accountability between banks/NBFCs and customers while checking credit reports.
Beneficiaries	All loan applicants, credit card holders, and individuals whose credit reports are accessed by banks or NBFCs.
Mode of Notification	Through SMS or Email whenever a financial institution checks the customer’s credit report.
Penalty for Delay	Banks/NBFCs must resolve credit report complaints within 30 days; a penalty of ₹100 per day applies for delays.
Additional Benefit	Customers receive a free CIBIL score report from banks to monitor and improve their financial health.

Latest News

The Reserve Bank of India (RBI) recently issued strict directives to all credit information companies and lenders regarding transparency in the CIBIL score check free online by PAN number. As per the latest circular, whenever a bank or Non-Banking Financial Company (NBFC) checks a customer’s credit report, the individual must be informed immediately through SMS or email.
Additionally, the RBI has introduced a penalty clause of ₹100 per day if banks fail to resolve customer complaints within 30 days. This new measure aims to strengthen customer trust, prevent data misuse, and promote responsible lending practices.
Financial experts believe these reforms will help eliminate credit score manipulation and ensure that individuals are fully aware of how their financial data is accessed or shared. This move is also expected to reduce the number of loan rejections due to incorrect or outdated information in the CIBIL score login system.

Also Read: RBI Tightens Personal Loan Rules: Credit Scores To Be Updated Every 15 Days

What Is A Credit Score?

Creditworthiness is a very important factor in granting loans, especially personal loans. Financial companies and banks that grant personal loans to their customers check their creditworthiness and then grant the corresponding loan.

However, many customers were often rejected by banks because of poor scores in their My CIBIL score reports or issues with Bajaj Finserv CIBIL score data. Now, the RBI has informed all banks about the new rules for CIBIL score reporting to protect customer interests.

You can now easily check credit score free through online platforms such as SBI CIBIL score check free or Paisabazaar CIBIL score, ensuring complete transparency.

RBI New Rules For CIBIL Score

The Reserve Bank of India has announced new rules important for those applying for personal loans and other types of loans.

Inform Customer

The RBI instructed all credit information companies to inform the customer whenever a bank or NBFC checks their CIBIL report. This information can be shared via SMS or email. There have been many complaints about the CIBIL score check free online by PAN number, which is why the RBI took this decision.

Inform Before Declaring The Default

Suppose the customer needs help to repay the loan to the financial company or bank. In that case, they can fail their system so that other banks also get information about the person, making it easier for them to get financial assistance from different sources.

The RBI informed banks and financial companies about their customers’ defaults before declaring them insolvent. This helps the customer maintain the loan amount within a certain period so that they do not default and get a personal loan next time.

If a bank declares you insolvent without prior notice, you can take legal action. These reforms protect consumers who often face negative updates in their My CIBIL score without notification.

Also Read: Benefits Of Making Women A Co-Borrower In The Loan

Banks Will Be Charged Rs 100 Per Day

If a customer files a complaint, the bank must resolve it within 30 days, 21 days for the bank and 9 days for the credit bureau. If it fails, the RBI will charge the bank ₹100 per day. This step will improve accountability, transparency, and trust between banks and customers using CIBIL score login and check my credit score online platforms.

Reason For Rejection

Banks must clearly explain why they rejected a personal loan or credit card application. This helps customers identify issues in their CIBIL score range and improve their credit behaviour to qualify next time.

Prepare A Customer's Annual Credit Report

Under the new RBI guidelines, all banks and financial companies must prepare an annual report on a customer’s credit activity. Customers can also request a free CIBIL score report once a year from their bank. Additionally, you can use portals like Paisabazaar CIBIL score free to verify your data and stay updated on your Bajaj Finserv CIBIL score or SBI CIBIL score check free report.

This ensures that individuals stay informed about their financial health, understand the CIBIL score full form, and improve their performance in the CIBIL score range from 300–900.

Conclusion

The RBI’s latest guidelines aim to make the CIBIL score system more transparent and customer-friendly. From CIBIL score login notifications to a free annual credit report, these changes will improve customer awareness and empower individuals to monitor and maintain their financial standing responsibly.

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