What changed
Earlier, credit institutions had to update credit information with CICs on a monthly basis or at shorter intervals as mutually agreed. Now, the mandatory reporting frequency is fortnightly—as on the 15th and last day of each month—with data submission due within 7 calendar days of the reporting fortnight. Additionally, CICs must now ingest data from credit institutions within 5 calendar days of receipt, reduced from the earlier 7 calendar days.
What it means for you
Lenders will get more current credit information reports, enabling faster and more accurate credit underwriting in a digital-first environment. Banks and other credit institutions need to tighten their internal data collection and submission processes to meet the fortnightly deadline, or face regulatory penalties. The shorter ingestion timeline for CICs also means quicker turnaround of credit reports for end-users.
What you must do
- Update your credit data reporting systems to generate and submit data as on the 15th and last day of each month.
- Ensure data is submitted to CICs within 7 calendar days of each reporting fortnight.
- Coordinate with your IT and compliance teams to test the new fortnightly cycle well before January 1, 2025.
- Review and revise any existing agreements with CICs to align with the new submission and ingestion timelines.
- Prepare for half-yearly reporting of non-adherence to RBI's Department of Supervision if timelines are missed.
Who it affects
All Commercial Banks (including Small Finance Banks, Local Area Banks, RRBs, excluding Payments Banks), All Primary (Urban) Co-operative Banks, State Co-operative Banks, Central Co-operative Banks, All-India Financial Institutions (Exim Bank, NABARD, NHB, SIDBI, NaBFID), All Non-Banking Financial Companies (including Housing Finance Companies), All Asset Reconstruction Companies, All Credit Information Companies
What is the effective date for the fortnightly reporting requirement?
The new fortnightly reporting frequency and the revised CIC ingestion timeline take effect from January 1, 2025. However, credit institutions and CICs are encouraged to implement these changes as soon as possible.
What happens if we fail to submit data within 7 calendar days of the reporting fortnight?
Non-adherence to the fortnightly submission timeline will be reported by CICs to RBI's Department of Supervision at half-yearly intervals (as on March 31 and September 30). Persistent or deliberate non-compliance may attract penal action under the Credit Information Companies (Regulation) Act, 2005.
Does this circular change the data ingestion timeline for CICs?
Yes. Earlier, CICs had to ingest data within 7 calendar days of receipt from credit institutions. This has now been reduced to 5 calendar days of receipt, ensuring faster availability of updated credit information reports.