New Credit Reporting Rule: The shadow of controversy regarding credit score, also known as CIBIL score, is not new. People who are denied loans have often complained of discrimination in spoiling their credit score. In view of this, the Reserve Bank has changed the rules of credit score reporting pattern. According to the new rule issued by the Reserve Bank, credit scores will be updated every 15 days.

There will be a report twice a year on how much the lender failed

In the credit score prepared twice a month, the report till the 15th will be released within seven days. Similarly, the credit score till the last date of the month will be released after five days. This report will be released twice a year to show which lenders failed to repay the loan to what extent. This will also be recorded in their credit score. The Reserve Bank has asked all credit bureaus to report in the format of 300-900 only. Every consumer will get the same credit score despite multiple addresses of their different accounts. All credit bureaus have also been asked to include co-borrowers and guarantors in the reporting of credit score. So that while considering a new loan application, the bank or financial institutions can have the correct picture of the loan taker and his guarantor. Such criteria will also promote clean lending practices to protect consumer interest.

You will have to pay a penalty of Rs 100 per day to the credit bureau for any mistake

In the new rule of the Reserve Bank, the credit bureau has been bound by many rules. It has been made mandatory for every credit bureau to inform the consumer through email or SMS when the consumer's credit history is updated. This will let the consumer know who is reviewing their credit history, so that the consumer can complain in case of any error in preparing the credit score. The credit bureau is bound to resolve any complaint of the consumer within 30 days. If it fails in this, the credit bureau will have to pay a penalty of Rs 100 per day.