RBI to Fix Credit Report Errors — Here’s How a Big Change Will Impact Your Credit Score
In a major policy reform, the Reserve Bank of India (RBI) has announced steps to fix errors in credit reports faster and more transparently.
If you’ve ever struggled with an incorrect CIBIL score, unpaid loan entries you never took, or delayed updates by banks, this change is a game-changer.
🔍 What Is the RBI’s New Move?
Starting FY 2025–26, RBI has mandated all Credit Information Companies (CICs) and lenders to:
Fix consumer-submitted errors within 21 days
Provide free credit report updates post-correction
Offer a grievance redressal number to track complaints in real time
Impose penalties on banks that fail to update correct data
🧠 Why It Matters
An error on your credit report can:
Reduce your credit score by 50–150 points
Impact loan approval and interest rates
Block credit card issuance
Affect home loan EMIs, business loans, and more
📊 Vizzve Financials: Expert Analysis
According to Vizzve Financials’ Credit Monitoring Unit:
"Nearly 27% of Indian credit users have at least one error in their report, affecting their financial mobility. RBI’s step will democratize access to fair credit."
🔹 Vizzve has integrated automated credit report error detection in its platform
🔸 Users will get alerts on mismatches via email & app
📑 Filing support is now live via Vizzve’s Credit Correction Assistant (beta)
❓ FAQs: RBI’s Credit Report Correction Reform
Q1: When will the RBI’s new credit correction system be live?
The system will be fully operational from Q1 of FY 2025–26 (starting April 2025).
Q2: How can I check if my credit report has errors?
You can use platforms like Vizzve Financials, CIBIL, or Experian to access your free credit report once a year. Vizzve also highlights discrepancies automatically.
Q3: Will my score immediately go up after a correction?
Yes, once the correction is verified and processed, updated scores reflect in 5–7 working days.
Q4: What if the bank doesn’t fix the error?
Under the new framework, consumers can escalate the issue to RBI's Consumer Education and Protection Department (CEPD).
Q5: Is there a fee to raise an error correction request?
No. Under the RBI's updated norms, 1 correction per year is free, and additional requests may have nominal platform-specific fees.
Q6: Can Vizzve help me correct my credit report?
Yes. Vizzve now offers Credit Report Correction Assistance, tracking bank-side filings and RBI escalations with real-time alerts.
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Published by Benny on July 3, 2025.
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