RBI Speeds Up Credit Score Updates: What to Expect in 2025 & 2026

• RBI mandates bi-weekly credit data updates from Jan 2025, reducing reporting lag from 45 days to two weeks for banks and NBFCs.
• Borrowers receive real-time alerts via SMS/email when their Credit Information Report (CIR) is accessed, aiding fraud detection.
• Lenders must notify borrowers before marking an account as default and provide specific reasons for loan rejections.
• Faster dispute resolution: Rs 100/day compensation if complaints aren't resolved within 30 days; institutions must update info within 30 days.
• From July 2026, lenders will submit borrower data weekly, further enhancing transparency and accuracy.

Why It Matters: RBI's new rules ensure faster, more transparent credit score updates, benefiting borrowers and lenders.