Home India FINANCE Parliament Question: On Time Payment of Loan EMI...
Date: 2025-12-15 Category: Not Applicable State: Union Government Country: India

Parliament Question: On Time Payment of Loan EMI

Issued by FINANCE · Not Applicable

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Executive Summary & Key Takeaways

**Executive Summary** This document summarizes the response to questions raised in Lok Sabha regarding timely loan EMI payments and their reflection in Credit Information Reports. The Reserve Bank of India (RBI) has mandated Credit Institutions (CIs) to shift to fortnightly reporting to Credit Information Companies (CICs) from January 1, 2025, and to submit credit information with higher frequency from July 1, 2026. The document also highlights the number of complaints received under the Reserve Bank - Integrated Ombudsman Scheme and refers to the Credit Information Companies (Regulation) Act, 2005 regarding accuracy and penalties. **Key Points / Main Content** * **Reporting Frequency to CICs:** * RBI has directed CIs to move from monthly to fortnightly reporting to CICs, effective January 1, 2025. * Effective July 1, 2026, CIs are directed to submit credit information with higher frequency (9th, 16th, 23rd, and last day of the month) to CICs or at shorter intervals. * **Complaints under Ombudsman Scheme:** * The Reserve Bank - Integrated Ombudsman Scheme received 4,801 complaints in Financial Year 2023-24 and 7,330 complaints in Financial Year 2024-25 related to delayed or incorrect credit reporting. * **Legal Provisions for Accuracy and Penalties:** * Section 19 of the Credit Information Companies (Regulation) Act, 2005, along with related rules and regulations, requires CICs and CIs to ensure the accuracy and completeness of credit information. * Section 25, read with Section 23(4) of the CICRA Act, permits RBI to impose penalties for contravention of the Act and its rules. **Impact Analysis** **Credit Institutions (CIs)** * **Impact:** CIs are required to enhance their reporting frequency to CICs, potentially requiring system and process changes. * **Action Required:** CIs must adjust their systems to comply with the fortnightly reporting mandate by January 1, 2025, and the higher frequency reporting by July 1, 2026. **Credit Information Companies (CICs)** * **Impact:** CICs will receive more frequent updates and will be expected to ensure the accuracy and completeness of the credit information they maintain. * **Action Required:** CICs must adapt their systems to accommodate the increased data flow and ensure data accuracy. **Customers/Borrowers** * **Impact:** Timely reporting should lead to more accurate and up-to-date credit information. * **Action Required:** Customers should continue to make timely payments and check their credit reports frequently to ensure accurate data is reported.

Key Entities Referenced

Reserve Bank of India (RBI): Directed Credit Institutions (CIs) to move to fortnightly reporting and can impose penalties. Credit Information Companies (CICs): Receives credit information from Credit Institutions (CIs). Credit Information Companies (Regulation) Act, 2005 (CICRA, 2005): Governs credit information companies and allows RBI to impose penalties. Credit Institutions (CIs): Required to report credit information to CICs with higher frequency as directed by RBI. Reserve Bank - Integrated Ombudsman Scheme: Handles complaints related to delayed or non-updation of credit records.
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GOVERNMENT OF INDIA MINISTRY OF FINANCE DEPARTMENT OF FINANCIAL SERVICES LOK SABHA UNSTARRED QUESTION NO. 2351 ANSWERED ON MONDAY, 15th DECEMBER, 2025/ 24 AGRAHAYANA, 1947 (SAKA) On Time Payment of Loan EMI 2351 DR. PRASHANT YADAORAO PADOLE: Will the Minister of FINANCE be pleased to state: (a) whether the Government is aware that delays between timely EMI/credit-card payments and their reflection in Credit Information Reports still persist causing temporary drops in CIBIL scores and affecting access to urgent credit or increasing interest rates and if so, the details thereof along with the reaction of the Government thereto; (b) the reasons for Credit Institutions (CIs) inability to report repayment data to Credit Information Companies on a daily or near real-time basis despite digital banking advancements; (c) whether all CIs are following the bi-monthly reporting cycle (15th and month-end) from 1 January 2025 and if so, the details thereof along with the monitoring and penal steps taken by RBI for delays beyond the seven-day window; (d) the number of complaints under Reserve Bank - Integrated Ombudsman Scheme in the last two financial years regarding delayed or non-updation of credit records, and compensation paid; and (e) whether the Government is likely to direct RBI to impose mandatory penalties when delayed updates cause proven loss or rejection of credit applications and if so, the details thereof? ANSWER THE MINISTER OF STATE IN THE MINISTRY OF FINANCE (SHRI PANKAJ CHAUDHARY) (a) to (c): In order to reflect the updated credit information of the customer and enabling lenders to make informed credit decisions, the Reserve Bank of India (RBI) has directed all the Credit Institutions (CIs) to move from monthly to fortnightly reporting to Credit Information Companies (CICs) w.e.f. January 01, 2025. Further, RBI, vide Amendment Directions issued on 04.12.2025, and are effective from 01.07.2026, has directed the CIs to submit credit information with higher frequency (i.e., as on 9th, 16th, 23rd and last day of the month) to CICs or at shorter intervals as mutually agreed upon between the CI and CIC. (d): For delay/failure to correct credit status or wrongly reported to Credit Information Companies, Reserve Bank - Integrated Ombudsman Scheme received 4,801 complaints in Financial Year 2023-24 and 7,330 complaints in Financial Year 2024-25. (e): In order to ensure the accuracy and completeness of credit information, Section 19 of the Credit Information Companies (Regulation) Act, 2005 (CICRA, 2005), read with Rule 20 & Rule 25 of CIC Rules, 2006 and Regulation 10 of CIC Regulations, 2006, states that a CIC or CI, as the case may be, in possession or control of credit information, shall take steps to ensure that the data relating to the credit information maintained and furnished by them is accurate and complete. Section 25 read with Section 23(4) of CICRA Act give permission to RBI to impose penalty on any person who contravenes any provision of this Act and rules made thereunder. ****

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