What changed
RBI issued the Reserve Bank of India (Urban Co-operative Banks – Credit Information Reporting) Directions, 2025, effective November 28, 2025. These directions replace previous fragmented instructions with a unified framework covering membership in Credit Information Companies, data reporting formats and timelines, data quality index review, and customer grievance redressal including compensation. The directions also establish a Technical Working Group and mandate best practices for UCBs.
What it means for you
UCBs must now adhere to standardized credit information reporting protocols, ensuring timely and accurate data submission to all four CICs. This will improve credit data quality, reduce rejections, and enhance risk assessment for lenders. Banks must also strengthen customer service frameworks, including compensation for reporting errors, and comply with the RBI Integrated Ombudsman Scheme for grievance redressal.
What you must do
- Review and align your credit information reporting processes with the new data formats and timelines specified in the directions.
- Ensure your bank becomes a member of all four Credit Information Companies listed in the directions.
- Implement a robust mechanism for rectifying rejected data and monitoring your Data Quality Index regularly.
- Update your customer grievance redressal framework to include compensation for credit reporting errors and integrate with the RBI Integrated Ombudsman Scheme.
- Train staff on the new reporting guidelines and best practices outlined in the directions.
Who it affects
Urban Co-operative Banks (UCBs), Credit Information Companies (CICs), Customers of UCBs, RBI's Department of Regulation
When do these directions come into effect?
The directions come into force with immediate effect from November 28, 2025, unless otherwise specified in individual provisions.
Which credit information companies are covered?
The four CICs registered with RBI are CRIF High Mark, Equifax, Experian, and TransUnion CIBIL. UCBs must report to all of them as per the directions.
What happens if a UCB fails to comply with these directions?
Non-compliance may lead to regulatory action by RBI, including penalties. The directions also mandate a compensation framework for customers affected by reporting errors.