New credit reporting rules: What has changed for borrowers and lenders

• by MSC
• May 23, 2025
• 2 min

The Credit Information Reporting Directions, 2025, released this year, are designed to address issues in India’s credit assessment system.

This article was first published on CNBC TV 18 on 21st May 2025.

The Reserve Bank of India (RBI) has introduced new credit reporting guidelines aimed at improving the accuracy and timeliness of borrower information shared with credit bureaus. The Credit Information Reporting Directions, 2025, released this year, are designed to address issues in India’s credit assessment system. One of the key changes is the move to bi-monthly credit data updates. Lenders are now required to report borrower information twice a month—by the 7th and the 22nd. This reduces the lag in tracking repayments and helps curb overleveraging.

“Frequent updates reduce blind spots in credit data and ensure more informed lending,” said Shubha Bhanu, Lead, BFSI at MSC (MicroSave Consulting).

Previously, monthly reporting led to delays of up to 40 days, often leaving credit institutions with outdated borrower profiles. The revised timelines are expected to help lenders detect risks earlier and make better decisions.

Another major change is the standardisation of credit scores across all credit information companies (CICs). Scores will now follow a uniform range of 300 to 900, making it easier for both lenders and borrowers to interpret creditworthiness. The guidelines also streamline credit reports by linking borrower records to government-issued IDs such as PAN, passport, or voter ID. A single, consolidated report will now reflect all open and closed loans, defaults, legal actions, and coborrower or guarantor roles.

“These measures help eliminate fragmented data and provide a clearer picture of a borrower’s total liabilities,” Bhanu added.

Additionally, CICs can now share credit data with non-specified users—entities not traditionally allowed access—provided they secure borrower consent. This expansion in data sharing is balanced by strict privacy and security requirements. While the new norms may require significant tech and process upgrades for lenders, experts see them as a step toward a more transparent and responsible credit ecosystem.