What changed
RBI has issued the Reserve Bank of India (Rural Co-operative Banks – Credit Information Reporting) Directions, 2025, which apply to all State Co-operative Banks and Central Co-operative Banks. The directions cover membership in CICs, data formats, reporting timelines, rectification of rejected data, and use of credit reports in loan appraisals. They also introduce a Technical Working Group, customer service enhancements, and a compensation framework for customers.
What it means for you
RCBs must now adhere to a standardized credit information reporting framework, ensuring timely and accurate data submission to CICs. This will improve credit discipline and risk assessment for lenders. Banks need to upgrade systems for data quality and grievance redressal, and may face compensation liabilities for reporting errors.
What you must do
- Review and align your bank's credit data reporting processes with the new formats and timelines specified in the directions.
- Ensure your bank is a member of all four registered CICs (CRIF High Mark, Equifax, Experian, TransUnion CIBIL) as required.
- Set up a mechanism for timely rectification of rejected data and monitor Data Quality Index (DQI) regularly.
- Implement a customer grievance redressal framework for credit information issues, including a compensation policy as per the directions.
- Train staff on the new reporting guidelines and the use of credit information reports in credit appraisal.
Who it affects
State Co-operative Banks, Central Co-operative Banks, Rural Co-operative Banks (RCBs), Customers of RCBs
Which banks are covered under these directions?
The directions apply to all Rural Co-operative Banks (RCBs), which include State Co-operative Banks and Central Co-operative Banks as defined in the NABARD Act, 1981.
What are the key reporting requirements for RCBs?
RCBs must report credit information to all four registered CICs in specified data formats, adhere to reporting timelines, rectify rejected data, and maintain a good Data Quality Index (DQI).
Is there a customer compensation framework under these directions?
Yes, the directions include a framework for compensation to customers for errors or delays in credit information reporting, and customers can also approach the RBI Integrated Ombudsman Scheme, 2021.