What changed
RBI issued a comprehensive direction replacing earlier fragmented instructions on credit information reporting by commercial banks. It introduces standardized data formats, stricter reporting timelines, a Data Quality Index for review, and a formal compensation framework for customers affected by reporting errors. The directions also mandate appointment of an Internal Ombudsman for grievance redressal.
What it means for you
Banks must overhaul their credit reporting processes to meet uniform data standards and timelines, reducing rejections and improving data accuracy. The compensation framework increases operational risk and cost for non-compliance. Stronger customer grievance mechanisms, including Internal Ombudsman, will require banks to invest in systems and training. Overall, this enhances credit discipline and consumer trust but raises compliance burden.
What you must do
- Update internal systems to align with the new standardized data formats and reporting timelines specified in the directions.
- Establish a process to regularly review Data Quality Index (DQI) and rectify rejected data within prescribed timelines.
- Implement a compensation framework for customers affected by incorrect credit information reporting.
- Appoint an Internal Ombudsman as per Chapter V to handle credit information-related grievances.
- Ensure staff are aware of the new reporting guidelines and customer service requirements under the directions.
Who it affects
Commercial banks (excluding Small Finance Banks, Payment Banks, Local Area Banks), Credit Information Companies (CICs) like CIBIL, Equifax, Experian, CRIF High Mark, Bank customers with credit accounts, Bank compliance and credit reporting teams
When do these directions take effect?
The directions came into force with immediate effect from November 28, 2025, unless otherwise specified for certain provisions.
Which banks are covered under these directions?
They apply to commercial banks as defined under the Banking Regulation Act, 1949, including banking companies, corresponding new banks, and State Bank of India, but exclude Small Finance Banks, Payment Banks, and Local Area Banks.
What is the key change for customer grievance redressal?
Banks must now have a formal compensation framework for customers harmed by incorrect credit reporting and must appoint an Internal Ombudsman to handle such complaints, in addition to the RBI Integrated Ombudsman Scheme.