Borrower? 8 rules about CIBIL and other credit scores you should know

TransUnion CIBIL Limited, previously known as the Credit Information Bureau (India) Limited and also referred to as just CIBIL, is one of the top four credit reporting agencies in India, apart from Experian, Equifax and CRIF High Mark.

These companies, known as the Credit Information Companies (CICs), generate credit scores of individuals and businesses that are used to define their creditworthiness, among other things.

In a written reply in Lok Sabha on August 11, Minister of State (Finance) Pankaj Chaudhary gave some important details about CIBIL.

“TransUnion CIBIL Limited, which was formerly Credit Information Bureau (India) Limited and referred to as “CIBIL”, is one of the credit information companies (CICs). CICs are governed by the provisions of the Credit Information Companies (Regulation) Act, 2005 (CICRA), the rules and regulations made thereunder. All CICs are registered with and regulated by the Reserve Bank of India (RBI). In terms of provisions of CICRA, RBI is empowered to determine policy in relation to the functioning of CICs and all CICs are bound to follow such policies,” the minister said.

He said that the functions of the CICs are to collect, process and collate information on trade, credit and financial standing of individuals (borrowers), and to provide credit information and credit scores to their users.

“Further, as per the Credit Information Companies Regulations, 2006, every CIC and credit institution (CI) is required to retain credit information collected, maintained and disseminated by them for a minimum period of seven years,” he added.

Rules for CIBIL and other CICs

The minister also listed some rules for CICs issued by the RBI, the Master Direction on Credit Information Reporting, 2025, under which these provisions are mentioned, aimed at improving their services, enhancing accountability and ensuring greater customer protection:

• CICs have to provide access to one free full credit report, including credit score, in an electronic format, to users whose credit scores are available to them.

• CICs have to appoint an Internal Ombudsman to act as an independent apex-level authority. This is aimed at strengthening the internal grievance redressal mechanism by enabling a review of customer complaints before their rejection.

• CICs and CIs (Credit Institutions) have to provide compensation for delayed updation or rectification of credit information.

• If any wrongful denial of compensation takes place by CICs or CIs, users can approach the RBI Ombudsman under RBIOS to submit a complaint for the same.

• CICs have to notify users (through SMS or email) whenever their credit information report (CIR) is accessed by any party. Further, any such enquiry will be reflected in the customer’s CIR.

• CIs have to send SMS or email alerts to customers about any defaults or delays in credit facilities, and also have to submit information to CICs regarding the same.

• CICs and CIs have to undertake Root Cause Analysis (RCA) of the grievances submitted by users at least every six months.

Grievance redressal mechanism

The RBI takes productive measures to strengthen the efficiency of the grievance redressal mechanism and customer service provided by CIs and CICs. RBI also offers an alternative grievance redressal system, the Reserve Bank - Integrated Ombudsman Scheme, 2021 (RBIOS). Customers can file a complaint under RBIOS in case they don’t get satisfactory service from CICs or CIs.

“RBI has proactively taken measures for strengthening and improving the efficacy of the grievance redressal mechanism and customer service provided by CIs and CICs, under the broad framework of CICRA, 2005. RBI has extended the alternate grievance redressal mechanism under the Reserve Bank - Integrated Ombudsman Scheme, 2021 (RBIOS) to cover grievances against CICs also. In case of being aggrieved by an act or omission of a CIC or CI, resulting in deficiency in service, the customer can file a complaint under RBIOS for redressal,” the minister stated in the reply.