According to RBI, 1 January 2017 onwards, it will be mandatory for all Credit Information Companies (CIC) to issue a free base-level consumer credit information report every year. This report will be in digital format which the customers can access by logging into any of the websites of credit bureaus of India.
According to RBI, CICs will set up necessary systems for customers whose credit data they hold to provide them access to Free Full Credit Report (FFCR) once a year. These reports will contain details about the latest position of credit institutions’ exposure to the individual as per records along with credit score. These details will be similar to the ones that appear in the in-depth reports provided to credit institutions.
Most of the Credit Information Companies have welcomed the move and seem to believe that RBI’s suggestion is in keeping with the credit card market in India.
A committee chaired by Adiyta Puri, Managing Director of HDFC Bank was set up by RBI to Recommend Data Format for furnishing credit information. This committee had suggested the idea of free credit score long back, but it is only now that it has been mandated.
The Chief Operating Officer of CIBIL, Harsha Chandorkar said that it is a very progressive move by RBI which will propagate awareness about the importance of credit history and discipline in individuals.
Now, that many banks are providing differential interest rates based on credit score, this move is expected to help an individual monitor his/her financial habits and score good to avail loans at lower interest rates.