What changed
RBI issued the Reserve Bank of India (Local Area Banks – Credit Information Reporting) Directions, 2025, effective immediately. LABs must now become members of all four registered CICs, with a one-time membership fee cap of ₹10,000 per CIC. The directions standardize data reporting formats, timelines, rectification processes, and customer grievance mechanisms.
What it means for you
LABs must comply with uniform credit data reporting standards, ensuring all credit information is shared with every CIC. This enhances data accuracy and consumer access to credit reports. Banks need to update internal systems for timely reporting and adhere to the new fee cap, while also strengthening customer service and grievance redressal frameworks.
What you must do
- Enroll as a member of all four RBI-registered CICs (CRIF High Mark, Equifax, Experian, TransUnion CIBIL) if not already done.
- Ensure one-time membership fees paid to each CIC do not exceed ₹10,000.
- Align credit information reporting processes with the prescribed data formats, timelines, and rectification guidelines.
- Update customer grievance redressal mechanisms to comply with the Reserve Bank-Integrated Ombudsman Scheme, 2021.
- Review and implement the best practices outlined in Chapter VI of the directions.
Who it affects
Local Area Banks (LABs), Credit Information Companies (CICs), Customers of LABs seeking credit reports and grievance redressal
When do these directions take effect?
The directions came into force with immediate effect from the date of issuance, as indicated in the document header (November 28, 2025).