In line with the Reserve Bank of India’s (RBI) updated guidelines, the frequency of credit information reporting by Credit Institutions (CIs) to Credit Information Companies (CICs) is set to undergo a significant change. This adjustment aims to enhance the timeliness and accuracy of credit information, thereby facilitating more informed credit decisions in the digital underwriting landscape.
According to the circular DBR. No. CID. BC. 60/20.16.056/2014-15 dated January 15, 2015, CICs and CIs were previously required to update credit information on a monthly basis or at shorter intervals as agreed upon. However, recognizing the need for more current data to support efficient credit underwriting processes, the RBI has now directed that this reporting frequency be revised to a fortnightly basis. Under the new directive, CICs and CIs must update credit information on the 15th and the last day of each month, or at such shorter intervals mutually agreed upon. Furthermore, credit information must be submitted within seven calendar days of the reporting fortnight.
Additionally, the RBI has revised the timeline for CICs to process and ingest credit information data received from CIs. Previously mandated to process this data within seven calendar days, CICs are now required to do so within five calendar days from receipt.
To ensure compliance, CICs are also instructed to provide a list of CIs that do not adhere to the fortnightly submission timelines to the Department of Supervision, RBI, Central Office, on a half-yearly basis (March 31 and September 30).
These revised instructions will become effective from January 1, 2025. However, CIs and CICs are encouraged to implement these changes as soon as possible, but not later than the specified date. Non-compliance with these directives will result in penal action as stipulated under the Credit Information Companies (Regulation) Act, 2005 (CICRA, 2005).
This updated framework is expected to improve the quality and timeliness of credit information, thereby supporting more accurate and efficient credit decision-making processes.
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