RBI to Update Credit Scores Weekly from April 2026, Making Loans and Credit Cards Faster and Easier

RBI’s New Weekly Credit Score Update Rule to Make Borrowing Faster and More Transparent

Getting a loan or credit card is set to become smoother and more efficient, thanks to a major regulatory shift from the Reserve Bank of India (RBI). The central bank has finalised draft guidelines that will require credit scores to be updated every week starting April 1, 2026. This move is expected to bring faster loan approvals, quicker credit score improvements, and better access to financial products for millions of consumers.

Until now, credit scoring agencies updated borrower information on a monthly or fortnightly basis. This often created delays, especially for individuals who had recently repaid loans or cleared credit card bills. The new weekly system aims to eliminate this gap by ensuring near real-time reflection of repayments and credit activity.

Why the Old System Was Holding Borrowers Back

Under the previous framework, banks and NBFCs sent customer data to credit bureaus once a month or every 15 days. As a result, even after successfully closing a loan or clearing overdue EMIs, borrowers had to wait 30 to 45 days for their improved credit behaviour to show up in their score.

This caused several issues:

• Loan approval delays due to outdated credit reports

• Higher interest rates, since lenders assumed higher risk

• Unnecessary rejections, especially for borrowers with recently updated repayment records

• Inaccurate credit underwriting, as lenders lacked fresh data

RBI has emphasised that modern lending requires real-time or near real-time information for accurate assessments and faster processing.

How the New Weekly Update System Will Work

Starting April 2026, banks will submit incremental data—only the updated information—on fixed dates: the 7th, 14th, 21st, 28th, and the last day of each month. This data will include:

• New loans sanctioned

• Loan closures

• EMI payments

• Overdue clearances

• Changes in asset classification

The full monthly data file must still be submitted by the 3rd of the following month, but credit information companies (CICs) will update scores much faster. With the new system, customers will see credit score changes within 7 days instead of waiting for an entire month.

Banks will also be required to follow uniform validation rules to minimise data rejection and improve accuracy.

Who Will Benefit the Most?

The weekly update mechanism is expected to be a game-changer for:

1. Borrowers who recently closed loans or cleared credit card dues

Their scores will rise faster, improving eligibility for new loans, balance transfers, or credit cards without long waiting periods.

2. Individuals trying to build credit profiles

Students, first-time borrowers, and small business owners will find it easier to track their credit journey with weekly updates, enabling better financial planning.

3. Consumers seeking lower interest rates

With fresher and more accurate data, lenders will be more confident in offering competitive rates to low-risk customers.

However, the rule also means negative behaviour will reflect quickly—missed EMIs or defaults will impact credit scores within a week.

Impact on Banks and Credit Bureaus

The transition will require banks to upgrade their systems to ensure timely data submission within two days of each cut-off date. Any delays will be tracked on RBI’s DAKSH compliance portal.

Credit bureaus will also need to enhance their processing speed, strengthen error-resolution mechanisms, and streamline verification standards to maintain accuracy.

While the initial phases may bring some technical and operational challenges, the overall system is expected to become more transparent, efficient, and borrower-friendly.

A Major Step Toward Modernizing India’s Credit Ecosystem

RBI’s decision to move from monthly updates to weekly reporting is poised to significantly strengthen the credit infrastructure in India. For borrowers, it means faster access to loans and cards, more accurate scores, and greater financial empowerment. For lenders, it ensures better risk assessment and fewer discrepancies.

With India’s credit market expanding rapidly, this reform marks a timely and much-needed shift toward a more dynamic, responsive, and data-driven lending environment.