The Reserve Bank of India has notified the Small Finance Banks (SFB) Credit Information Reporting Directions, 2025, a consolidated and updated framework governing how SFBs must collect, maintain, and report credit information. These Directions, issued through Notification dated November 28, 2025, come into force immediately and apply to all SFBs designated as Credit Institutions (CIs) for the purpose of credit information reporting.
While many provisions build on existing CICRA, 2005 rules, especially those relating to timelines, accuracy obligations, and data rectification, the 2025 Directions refine, consolidate, and strengthen the regulatory expectations for SFBs. The Directions also fill operational gaps by adding best practices, consumer alert mechanisms, SHG reporting clarity, and structured redressal systems.
Objectives of the Directions
As stated in the notification, the Directions aim to:
- Establish a standardised framework for reporting and disseminating credit information
- Protect the confidentiality and security of sensitive credit data
- Ensure that customers can access, verify, and dispute their credit information
- Strengthen grievance redressal mechanisms for credit-reporting-related issues
- Improve the quality, timeliness, and completeness of credit information submitted to CICs
These refinements support uniformity, borrower protection, and better supervisory oversight.
Key Provisions and Requirements
1. Mandatory Membership with All RBI-Registered CICs
SFBs must maintain membership with all four Credit Information Companies registered under Section 5 of CICRA. This ensures full borrower coverage across bureaus and reduces inconsistencies in credit histories.
2. Uniform Credit Reporting Formats (UCRF)
The Directions mandate that all credit data be submitted strictly in the Uniform Credit Reporting Format (UCRF). The UCRF includes:
- Consumer format
- Commercial format
- Microfinance (MFI) format
These formats are detailed in Annex I of the Directions.
Uniformity ensures compatibility across CICs and consistency in interpretation and scoring.
3. Fortnightly Data Submission
SFBs must submit credit information every fortnight, covering:
- Updated loan balances
- Repayment status
- Write-offs
- Compromise settlements
- NCLT/NCLAT proceedings
- Unhedged foreign currency exposure (UFCE)
Fortnightly cycles improve accuracy and reduce the risk of outdated credit profiles.
4. SHG Data Collection and Reporting: Correct Thresholds
This is an area where precision matters, and the 2025 Directions provide significant clarity.
a) Non-credit information collection (from all SHG members)
SFBs must collect basic demographic and non-credit details for every SHG member, even when loan exposure is small. The formats for these fields are provided in Annex III.
b) Credit information reporting (threshold applies)
For reporting to CICs, credit data must be furnished in the MFI UCRF format:
- For SHG loans above ₹1 lakh, SFBs must report member-level credit information.
- Member-level data for smaller amounts may be required depending on values specified in the detailed Annex III fields (including ₹30,000-level components for certain data elements).
This dual structure ensures that SHG borrowers are visible in the credit ecosystem without overburdening early-stage micro-credit beneficiaries.
5. Data Rejections, DQI, and Quality Compliance
SFBs are responsible for:
- Rectifying all rejected data flagged by CICs
- Meeting minimum Data Quality Index (DQI) benchmarks
- Ensuring accuracy as per CICRA Rules 20–21
Poor data quality affects borrowers and also invites regulatory scrutiny. The Directions require SFBs to maintain systems that minimise submission errors.
6. SARFAESI Asset Display Requirements
In line with the SARFAESI Act, SFBs must display information on secured assets when enforcement actions are initiated. Annex IV provides the required display format. This enhances transparency for borrowers and third parties.
7. Customer Alerts and Notifications
The 2025 Directions introduce important consumer-protection measures, including:
- SMS and email alerts when payment defaults occur
- Notifications upon material changes in the borrower’s credit status
- Alerts for data corrections or dispute resolutions
These mechanisms increase borrower awareness and reduce the likelihood of disputes.
8. Grievance Redressal Framework
The grievance system has been strengthened and aligned with RBI’s overall consumer-protection approach.
a) Compensation for delayed updates
If SFBs fail to update or correct credit information within the prescribed timelines, they must pay compensation to the affected customers.
b) Internal Ombudsman (IO)
Every SFB must appoint an Internal Ombudsman to review unresolved complaints before external escalation, consistent with RBI’s broader ombudsman structure.
c) Alignment with the RBI Integrated Ombudsman Scheme (RB-IOS)
The Directions require SFBs to follow RB-IOS norms in letter and spirit to improve customer resolution.
9. Best Practices and Operational Enhancements (Chapter VI)
The Directions include a set of best practice guidelines, reinforcing sound governance.
These include:
- Centralized issuance of No-Objection Certificates (NOCs) to prevent branch-level delays
- Priority handling of credit-reporting-related grievances
- Ensuring standardized staff training
- Clear audit trails for credit data corrections
- Appropriate oversight for outsourced credit data functions
These practices strengthen internal control frameworks and reduce errors.
10. Reserve Bank’s Technical Working Group (TWG)
A Technical Working Group will:
- Review reporting practices
- Recommend enhancements
- Update UCRF formats when required
- Provide operational clarifications
This ensures the framework remains current as technology and lending practices evolve.
Annexes Explained (Detailed Descriptions)
Annex I: UCRF Formats
Annex I includes the Uniform Credit Reporting Format templates for consumer, commercial, and microfinance data. These formats govern:
- Identity fields
- Account attributes
- Repayment behaviour
- Default status
- Restructuring indicators
- Contact and communication fields
- Microfinance-specific attributes
Annex I also includes updates such as mandatory borrower email fields and revised behavioural indicators.
Annex II: Additional Reporting Parameters
Annex II lists supplementary fields required for complete reporting, especially for:
- Compromise settlements
- NCLT/NCLAT matters
- UFCE details
These inputs enhance the risk signalling capacity of credit bureaus.
Annex III: SHG Member Data Collection and Reporting
Annex III details:
- Mandatory non-credit data fields for all SHG members (including KYC, demographic data, and group mapping)
- Credit information reporting fields for loans above ₹1 lakh
- Optional fields and thresholds for certain categories (e.g., ₹30,000 components)
- MFI-format alignment for member-level reporting
This annex ensures clarity for SFBs with large microfinance portfolios.
Annex IV: SARFAESI Asset Display Format
Provides the mandated layout and fields for publishing details of secured assets under enforcement. This includes borrower identification codes, property details, and notices.
Annex V: UCRF Modifications and Updates
Annex V captures revisions to UCRF structures, including:
- Additional contact fields
- Behavioural/resolution indicators
- Format clarifications
- Transition rules for legacy system upgrades
Repeal of Earlier Directions
The 2025 Directions supersede all previous instructions issued to SFBs on credit information reporting. The repeal includes a savings clause, ongoing actions and obligations under previous Directions remain valid until resolved.
Impact on Small Finance Banks
1. Enhanced credit discipline
Frequent submissions and DQI requirements improve internal monitoring and portfolio health.
2. Stronger NPA and PSL monitoring
Improved reporting supports priority sector lending oversight and helps detect early stress in rural and microfinance portfolios.
3. Better risk management
Uniform formats and improved borrower visibility reduce over-indebtedness and strengthen underwriting.
4. Operational upgrades for compliance
SFBs must modernize systems, especially for SHG reporting and automated alerts.
5. Strengthened consumer trust
Timely updates, alerts, and robust grievance processes enhance borrower confidence.
Conclusion
The RBI Small Finance Banks (SFB) Credit Information Reporting Directions, 2025 consolidate and refine the existing CICRA framework, introducing sharper reporting standards, clearer SHG responsibilities, enhanced consumer safeguards, and robust governance expectations. These Directions position SFBs for greater regulatory harmony, better risk management, and improved borrower protection in an increasingly data-driven lending environment.
FAQs
1. What is the purpose of the RBI’s 2025 Directions for SFBs?
To standardize credit information reporting, strengthen data security, improve grievance redressal, and refine SHG reporting norms.
2. What SHG data must SFBs report?
SFBs must collect non-credit information from all members and report member-level credit data for SHG loans above ₹1 lakh, using the MFI UCRF format.
3. Are these Directions new or refinements?
They refine and consolidate prior CICRA-based rules, with new clarity on SHG thresholds, best practices, alerts, UCRF updates, and governance structures.
4. How often must SFBs report borrower data?
Once every fortnight.