RBI recently instructed banks and credit information companies (CICs) to update the credit information they collect at shorter intervals, i.e. once a fortnight rather than once a month.
The instructions were issued on Thursday via a notification after the monetary policy statement by RBI Governor Shaktikanta Das.
The central bank has kept the repo rate unchanged at 6.5% for the ninth consecutive time.
Currently, banks are supposed to report to credit information companies (CICs) such as CIBIL and Equifax once a month.
Governor Das on Thursday proposed to increase the frequency of reporting credit information to once a fortnight.
As a result of this, borrowers will benefit from faster updation of their credit information, particularly when they repay their loans.
The banks, at the same time, will be able to make better risk assessment of borrowers.