RBI Overhauls Credit Card Rules for 2026: Weekly Credit Score Updates, No Prepayment Fees

• RBI introduces three major changes to banking and personal finance rules effective 2026, impacting credit scores, loan terms, and bank account activity.
• Credit scores will now be updated weekly instead of monthly, making timely EMI and credit card payments more critical for maintaining a good score.
• Prepayment and foreclosure charges on all floating rate loans (home, personal, auto) will be abolished from January 1, 2026, offering borrowers greater flexibility.
• Banks will be required to strictly monitor inactive and dormant accounts, mandating regular KYC updates and customer notifications to prevent fraud.
• These changes aim to enhance transparency, protect borrowers, reduce fraud risks, and encourage greater financial discipline among individuals.

Why It Matters: RBI's 2026 rule changes mandate weekly credit score updates, eliminate floating loan prepayment fees, and tighten dormant account monitoring.