The credit score system in India is soon going to undergo a major change. The RBI has released a significant draft, under which credit scores will now be updated weekly. Currently, scores are updated twice a month, but starting April 2026, this process will be accelerated. This will not only make it easier for borrowers to obtain loans and credit cards but will also provide banks with more accurate and up-to-date data. Experts say this change will make the Indian credit ecosystem more transparent and reliable than before.

Now, your credit data will be refreshed every week, not every month.
According to the draft of the RBI's Credit Information Reporting Amendment, 2025, Credit Information Companies (CICs) like CRIF High Mark will be required to refresh data on the 7th, 14th, 21st, 28th, and the last day of every month. Updates can be made more frequently if agreed upon with banks and NBFCs. Banks will be required to submit complete month-end data within three days, and only new or changed data for each weekly update within two days. This will include all information on new accounts, closed accounts, repayment updates, demographic changes, and classifications such as SMA. Failure to meet deadlines will require CICs to report them to the RBI's DAKSH portal.

Faster updates will benefit borrowers immediately.
This change will have the greatest impact on borrowers. Previously, it took more than two weeks to see improvements in credit scores, but now weekly updates will ensure these improvements are reflected more quickly. Repaying a loan, paying a credit card bill on time, or correcting an error will reflect faster in the score. This will increase the likelihood of loan approval and could lead to lower interest rates, as many banks adopt score-based pricing. Furthermore, issues such as incorrect reporting or data mismatches will be detected more quickly, potentially reducing disputes and complaints.

Banks will get a new tool, making risk assessment easier. Weekly reporting will also significantly benefit banks by providing them with up-to-date and accurate borrower data. This will enable banks to conduct better underwriting, meaning they can more reliably assess the riskiness of each customer. The new data will enable banks to more effectively determine factors such as loan interest rate, amount, and term. Furthermore, they will be able to better monitor loan quality. This move by the RBI moves the Indian credit system towards real-time data, which could enable daily or even real-time updates in the future.

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