How do I dispute an incorrect entry in my CIBIL credit report?

Question

My CIBIL report shows a loan as overdue even though I closed it two years ago, and this is affecting my new loan applications. How do I get this corrected? I would rather settle this without going to court if the law allows it, but I need to know my rights before I sign anything. Please tell me what to do first and what document to keep.

MyVakeel Legal Desk · Accepted Answer

Under Indian law, Credit Information Companies (Regulation) Act 2005, Section 21 is the starting point for this banking law question. What follows is the position in substance, together with the steps that usually make the difference in practice.

Under Section 21 of the CICRA read with RBI's Master Direction on Credit Information Companies, a credit institution is obligated to correct and update credit information within 30 days of being notified of an inaccuracy.

You have the right to raise a dispute directly with the credit information company such as CIBIL, Equifax, Experian or CRIF, which must forward it to the concerned bank for verification.

If the bank confirms an error, it must send a corrected update to all credit bureaus it reports to, not just the one where you raised the dispute, and this must generally be resolved within 30 days of the complaint.

If the bank fails to resolve the dispute within the timeline, RBI's Master Direction envisages compensation to the customer for delayed resolution beyond the 30-day period in specified cases.

Persistent incorrect reporting affecting your ability to get credit is a deficiency of service and can also be pursued as a consumer complaint under the Consumer Protection Act.

What to do next: 1) Download your credit report and identify the exact incorrect entry along with account number and bank name; 2) Raise an online dispute directly with the credit bureau, attaching the loan closure letter or NOC; 3) Simultaneously write to the reporting bank's nodal grievance officer demanding correction within 30 days; 4) If unresolved beyond 30 days, escalate to the RBI Ombudsman or file a consumer complaint seeking correction and compensation.

If you are unsure whether your facts fall inside Credit Information Companies (Regulation) Act 2005, Section 21, that is worth checking with an advocate before you commit to a route, because switching later costs time. You can post the details on the MyVakeel forum for a practising advocate to review, or book a paid consultation with a Bar Council verified lawyer in banking law.