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News India Live, Digital Desk: Bank Policies: If you are also among those who are worried about the deterioration of CIBIL score as soon as you take a credit card, personal loan, or any EMI, then this news is nothing short of a lottery for you! The Reserve Bank of India (RBI) has implemented a new rule to overcome your biggest financial fear, so that you will not have to panic immediately even if you have a slight delay in your EMI. This will prove to be a ‘big relief’ for millions of borrowers.
What used to happen earlier? If the bill of someone’s EMI or credit card did not come within the next day or a few days of the date, then it was recorded in his credit report. It had a direct impact on your CIBIL score, which immediately fell down. Once the cibil dropped, it was difficult to take a new loan, take a credit card, all.
But now the RBI has made a very important change to bring transparency and fairyness in this entire process. The RBI has said that banks and other financial institutions (eg NBFCs) will no longer be able to make a hurry to report the arrears.
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7 days ‘waiting period’: The new rule says that now when an EMI or bill of bill will miss, it will not be considered ‘non-performing asset’ (NPA) or ‘overdue’ immediately. Before reporting to the bank to you Waiting for at least 7 days Have to do it. This can be called ‘Grace Period’.
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Notification necessary: During these 7 days, the bank will inform you about your dues and the last date of its payment through email or SMS.
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Delay on CIBIL: This means that if you pay your dues within 7 days, the bank will not be able to report it as ‘default’ or ‘late payment’ in your cibil. This will avoid your CIBIL score unnecessarily deteriorating.
How long will this rule come into force?
This new instruction of RBI 1 August, 2024 Will be applicable from This rule will curb the methods of banks where they used to spoil the CIBIL score of the borrowers rapidly even on a small lapse. This shows how serious the RBI is about protecting the interests of the common customer.
Clear, this change is very helpful for those who losing their financial score due to a small technical error, delay in salary, or any minor lapse. Now you will get a chance to take a breath and correct your EMI, which will save your financial health deteriorating. So now, a little patience and a little caution – your cibil will make the journey absolutely ‘smooth’
RBI’s Big Decision on Loans: Now not afraid of ‘penalty interest’, your pocket gets big relief