The Reserve Bank of India will have made some changes in the rules regarding credit scores that would make a difference. These rules are framed for customer convenience and interest protection. The loan processing is simplified now; customers will also be more informed about their credit score. According to the new rules, now the credit score of the customers will be updated every 15 days. This update will be done on the 15th of every month and also at the end of the month. That means the customers will know the latest status of their credit score.
1. Sending Mandatory Information
The bank or NBFC will now have to inform the customer through SMS or email when he or she checks a client’s credit report. By this, the customer can keep track of what is going on with his credit score.
2. Reason For rejection Should Be Provided
Banks will also have to mention the reason for turning down a particular application of a borrower. This will help customers to improve their credit status. Credit companies will now have to provide a full report of credit to the customers every year at no cost to them. For this, a special link would have to be set up on the company’s website.
3. Prior Notification Of Default
In such a case, an establishment is to inform the customer in advance through SMS or email. Also, banks will have to appoint nodal officers who will resolve credit score related problems.
4. Grievance Redressal Time
The time limit for resolving complaints will now be within 30 days. Institutions will incur a fine of Rs 100 for each day of violation of this time limit. Banks have been given 21 days and credit bureaus have been given 9 days. The new rules of RBI are important for safeguarding customer interests. With that, the credit score system becomes more transparent, and customers will enjoy better services. This would change positively in the entire sector of finance.
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