The Reserve Bank of India (RBI) has proposed a major change to the country’s credit reporting system. Customers’ credit scores will now be updated every seven days instead of twice a month, aiming to make lending and credit assessment faster and more reliable.

1. What’s Changing?

· Current system: Credit scores updated twice a month

· New system: Weekly updates to reflect recent loan repayments, credit card usage, or defaults

· Applies to all borrowers whose credit history is tracked by RBI-approved agencies

Makes your current financial behavior visible almost in real-time.

2. Why RBI Made This Change

· Faster updates allow lenders to make timely decisions

· Helps borrowers who regularly pay EMIs or clear credit cards on time to benefit sooner

· Increases transparency and accuracy in credit reporting

A step toward a more efficient credit ecosystem.

3. Potential Benefits for Borrowers

· Improved loan approval chances if credit behavior is good

· Reduced delay in reflecting timely repayments

· Easier access to new credit products and better interest rates

4. Implications for Lenders

· Lenders can assess creditworthiness more frequently

· Reduces dependency on stale or outdated credit information

· Enables dynamic interest rate and loan offer adjustments based on recent behavior

5. Things Borrowers Should Keep in Mind

· Timely EMI and credit card payments are more important than ever

· Regularly check your credit report to ensure accuracy

· Errors in reporting can now impact weekly decisions, so prompt correction is crucial

6. Final Takeaway

Weekly credit score updates by the RBI make the system faster, fairer, and more transparent. Borrowers with good repayment behavior can benefit from quicker approvals, while lenders gain up-to-date insights for smarter decisions.



Disclaimer:

The views and opinions expressed in this article are those of the author and do not necessarily reflect the official policy or position of any agency, organization, employer, or company. All information provided is for general informational purposes only. While every effort has been made to ensure accuracy, we make no representations or warranties of any kind, express or implied, about the completeness, reliability, or suitability of the information contained herein. Readers are advised to verify facts and seek professional advice where necessary. Any reliance placed on such information is strictly at the reader’s own risk.

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G GOWTHAM

29/11/2025 12:42 PM