CIBIL Score New Rule 2025: Recently, big orders have been issued by the Reserve Bank of India regarding CIBIL score. Due to which crores of people taking loans will benefit… To know the complete information related to this new guideline issued by RBI, read this news completely-
Reserve Bank of India (RBI) has taken an important decision for home, personal and auto loan borrowers. Now the CIBIL score information will have to be updated in real time, which was earlier done once in 15 days. Borrowers are expected to get a big benefit from this move of RBI. This change will give them instant and accurate information about their credit status.
RBI (Reserve Bank of India) Deputy Governor M. Rajeshwar Rao has urged credit information companies (CICs) like TransUnion CIBIL to share data in real-time instead of fortnightly (15 days). Speaking at a CIBIL event, Rao said that rapid exchange of data will increase trust, efficiency and transparency in the system. RBI released this address on its website. This move is expected to benefit the borrowers immediately, as it will update their credit information more quickly.
Continuous credit information is necessary –
Rao said that we should expect more and continuous information about credit information. Getting credit information in real time or near real time will increase the accuracy of risk assessment, will help in showing borrower activities like closing the loan account or repayment and will also improve the consumer experience. On this occasion, Rao admitted that investing in technology, process redesign and change management will cost money but this amount will be much less than the benefits.
Over-reliance on credit institutions –
The deputy governor said that another major challenge in this case is identity standardization. CIC is dependent on credit institutions to provide accurate and valid identity. Without this, there is a risk of duplication and incorrect reporting. The RBI deputy governor expressed concern over the model risk from the use of complex artificial intelligence (AI) and machine learning (ML) models and said that the problem arises due to not fully testing, validating or monitoring them for biases and fluctuations in performance.
Necessary to deal with default –
Amid rising risks in the banking system, the Deputy Governor has stressed the need for banks to make strong preparations to deal with default. He said that the existing models require strict verification, constant monitoring and strong governance so that they remain fair, transparent and in line with regulatory and ethical standards. Without these measures, it will be challenging for banks to reduce their loan risk despite increasing loan expansion and growing demand.
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