RBI's Weekly Credit Reporting: Boosts Scores, Raises Anxiety for Borrowers

• RBI mandates banks to report credit data to bureaus every 7 days, down from 30 days.
• The new rule aims for faster credit score improvement, especially for secured loans, and quicker reflection of timely payments.
• It is expected to strengthen the lending system, reduce fraud, and help banks assess customer behavior more accurately to cut NPAs.
• However, quicker reporting means faster consequences for credit mismanagement, potentially causing anxiety due to more frequent score fluctuations.

Why It Matters: Your credit score will update faster, affecting loan eligibility and terms.