Latest news with #Cibil
India.com
02-07-2025
- Business
- India.com
RBI's big order on CIBIL score! asked credit information companies to update…, will this benefit or harm you?
The Reserve Bank of India (RBI) has issued a major directive regarding CIBIL scores, which are crucial for availing loans. The RBI has mandated that CIBIL scores must now be updated in real-time. It stated that this move will make the loan disbursal process more transparent and efficient, ultimately benefiting customers. RBI Deputy Governor M Rajeshwar Rao has asked credit information companies like TransUnion Cibil to switch to real-time data reporting from fortnightly at present. RBI On CIBIL Score Speaking at a conference organised by Cibil here on Tuesday, Rao said quicker relaying of data from the CICs will help in deepening trust, efficiency and transparency in the system for everybody. 'We must aspire to more frequent updates. Real-time or near-real-time credit reporting will improve underwriting precision, enable timely reflection of borrower actions like loan closures or repayments and deliver a superior consumer experience,' Rao said. Admitting that this entails costs because of investments in technology, process reengineering, and change management, Rao underlined that the benefits will far outweigh the costs. Whom Will It Benefit? This is a significant relief for those seeking home loans, personal loans, or auto loans. In its latest order, the RBI said that information related to CIBIL scores must now be provided in real-time, as opposed to the earlier practice where companies updated it once every 15 days. This decision is expected to offer considerable benefits to loan applicants. Rao also asked the CICs and other companies competing with Cibil, including Experian and CRIF High Mark, to move towards having a 'unique borrower identifier', which is uniform across the system. 'Another key challenge is identity standardisation. CICs rely on credit institutions to provide accurate and validated IDs. Without this, duplication and misreporting remain risks,' he said, explaining the rationale for having such a system. Rao also exhorted the industry to ensure that innovation is 'responsible and accountable', and not at the cost of an individual's rights to data privacy. (With Inputs From PTI)
Time of India
27-06-2025
- Business
- Time of India
Poor Cibil score costs TN man bank job; HC upholds decision
CHENNAI: Asserting that a person with poor or no financial discipline cannot be trusted with public money, Madras high court confirmed State Bank of India's decision cancelling the appointment of a circle-based officer (CBO) due to a poor Cibil score. "...the bank took a prudent decision that candidates with a history of default in repayment of loans and adverse Cibil reports were ineligible. The probable rationale behind the criteria may be that in the banking business employees deal with public money and, therefore, financial discipline needs to be strictly maintained," Justice N Mala said. Further, there must be efficiency in handling public money and, obviously, a person with poor or no financial discipline cannot be trusted with public money, she added. The court's observations came while dismissing a plea moved by P Karthikeyan challenging the SBI order dated April 9, 2021 cancelling his appointment as CBO. According to the petitioner, on the date of notification of the recruitment, he did not have dues or an adverse report in repayment of loans/credit card as he had cleared all loans. He was not declared a defaulter by the Cibil report, or by any other agency, and therefore the order cancelling his appointment as a defaulter was illegal and liable to be set aside, his counsel said. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like India's first integrated Power Backup Solution - Livguard Lithium-X Livguard Shop Now Undo Opposing the plea, SBI submitted that one stipulated eligibility criteria was that candidates with records of default in repayment of loans, adverse reports by Cibil or other external agencies were not eligible for appointment. Since the petitioner gave a false declaration, his appointment was cancelled, SBI counsel C Mohan said. The petitioner's Cibil report revealed an adverse credit history in repayment of loans and credit card usage, and therefore the petitioner was found ineligible under Clause 1(E) of the eligibility criteria, he added. Concurring with the submissions, the court dismissed the petition.
