Nagpur: As the Reserve Bank of India (RBI) has already issued draft rules mandating a weekly credit reporting system, there is also a thought of further reducing the gap in future. It can be on a real-time basis, or close to it, said sources. However, the final implementation is still far away, as the bank is yet to come up with final rules on weekly reporting itself.The credit information companies keep a credit score of borrowers on the basis of reporting of repayment patterns by lending agencies. Higher the score, better the prospects of getting a loan. This also helps in keeping defaulters away or charging them a higher interest rate as a safety measure for the lender. Even after a repayment is done, there is a time lag in revising the credit score which affects borrowing.
The reporting was recently brought down to a fortnightly basis, and the draft calls for further reducing it to a weekly basis. However, it is learnt that the RBI is also open to further reduction as a next step. However, first the mandate on weekly reporting will have to come into effect. It is planned to be brought in by July 2026.Chartered accountant Julfesh Shah said that even in the current mechanism, the banks need to send updates to credit information agencies earlier. At times, it takes months to pass on the information, he said. It would help the borrowers if a quicker reporting system is put in place.Tejinder Singh Rawal, also a chartered accountant, said there are apprehensions that it should not catch minor defaults that often happen inadvertently. For example, if the gap is reduced, even one day delay in repayment due to any reason should not affect the credit score. If it helps borrowers improve their score faster on clearing old dues, there should not be an underlying risk due minor delays, he said.
