RBI Shortens Frequency of Credit Reporting to Fortnightly

The Reserve Bank of India (RBI) has announced a significant change in the reporting frequency for credit information from monthly to every 15 days. This update, effective from now, aims to enhance the accuracy and timeliness of credit data available to lenders and borrowers alike.

Key Objectives

Faster Updates for Borrowers

With the new fortnightly reporting schedule, any changes in a borrower’s credit status, such as loan repayments, will be reflected more promptly in their credit report. This allows borrowers to see the positive effects of their financial actions, like debt repayment, more quickly.

Enhanced Accuracy

The increased reporting frequency ensures that credit reports are more current, offering a clearer picture of a borrower’s financial health. This helps in a more accurate assessment of creditworthiness, which can be advantageous for borrowers seeking favorable loan terms.

Better Risk Assessment for Lenders

For lenders, the availability of up-to-date credit information improves risk assessment capabilities. This can lead to more informed lending decisions and potentially better interest rates for borrowers with a strong credit history.

Industry Reactions

RBI Governor’s Statement

RBI Governor Shaktikanta Das highlighted that the fortnightly reporting will enhance the transparency of credit information and promote a healthier credit culture.

Expert Opinions

Vishal Sharma, CEO of AdvaRisk, praised the move as progressive, while Anil Gupta from ICRA Ltd. noted that quicker updates will improve lending decisions and reflect the rapidly changing credit profiles of borrowers.

Piyush Shukla

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