RBI reduced the frequency of bank reports to credit information companies

Current Context: On 8th August 2024, The Reserve Bank of India (RBI) increased the frequency of credit information reporting by credit institutions (CIs) to Credit Information Companies (CICs) from a monthly basis to a fortnightly basis.

• This change aims to provide a more up-to-date picture of a borrower’s credit status, benefiting both borrowers and lenders.
• Starting January 1, 2025, CIs will be required to report credit information every 15 days.
• This will ensure that any changes in a borrower’s credit status, such as loan repayments or new credit inquiries, are reflected more quickly in their credit reports.
• This move is expected to enhance the accuracy of credit assessments and reduce the risk of over-leveraging by borrowers.

Question:

1 How often will credit institutions be required to report credit information under the new RBI regulation starting January 2025?

• A) Every 30 days
• B) Every 45 days
• C) Every 7 days
• D) Every 15 days

Answer: D) Starting January 1, 2025, credit information will be reported to Credit Information Companies every 15 days, ensuring that any changes in a borrower’s credit status are reflected more quickly in their credit reports.