RBI Mandates 15-Day Credit Score Updates
The Reserve Bank of India (RBI) has mandated that lenders update credit bureau records every 15 days, effective January 1, 2025, replacing the previous monthly update cycle. This aims to enhance the timeliness and accuracy of credit scores, rewarding responsible borrowers faster and helping lenders make better decisions. It addresses challenges like multiple loan applications, evergreening of loans, and outdated EMI data. The transition requires technological upgrades for lenders and credit bureaus but promises improved market efficiency, risk reduction, and better credit evaluations. The move is set to foster greater transparency and healthier lending practices in India’s credit market.
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