Common situations

Correcting a Wrong Credit Report or Score

Applies when a credit report issued by a credit information company shows a loan or credit card as unpaid, defaulted, or overdue when it has actually been repaid or was never taken, or otherwise contains an error that has lowered the credit score. Both the lender that reported the data and the credit information company have statutory duties to correct it.

Steps

1. Obtain the credit report and identify the exact error
Every individual is entitled to one free full credit report each calendar year from each credit information company, under an RBI directive effective from 1 January 2017. Note the exact account, lender name, amount and status shown incorrectly.
2. Raise a dispute with the credit information company
Each credit information company runs its own online dispute-resolution portal. Submit the disputed entry along with supporting proof (a No Objection Certificate for a closed loan, bank statements showing EMI payments, or proof the account was never opened).
3. Raise the same dispute with the lender that reported the data
A credit information company only carries what the reporting bank or NBFC (the 'credit institution') has furnished. Under Section 21(3) of the Credit Information Companies (Regulation) Act, 2005, read with Rule 20(3)(c) of the Credit Information Companies Rules, 2006, the credit institution has 21 calendar days to send corrected information once informed of the error.
4. Track the overall 30-day resolution window
Between the credit institution's 21 days and the credit information company's own processing, RBI's framework gives the two together an overall 30 calendar days from the date the dispute was first filed to resolve it.
5. Claim compensation if the 30-day window is missed
Under RBI's Framework for Compensation to Customers for delayed updation/rectification of credit information (effective 26 April 2024), the complainant is entitled to Rs 100 for every calendar day of delay beyond the 30-day window, payable by whichever party caused the delay.
6. Escalate to the credit information company's internal ombudsman
Since April 2023, every credit information company has been required to appoint an internal ombudsman to review a dispute the company itself has already rejected in whole or in part.
7. Escalate further to the RBI's Integrated Ombudsman
Since credit information companies were brought within the Reserve Bank -- Integrated Ombudsman Scheme, 2026, an unresolved complaint, or one where compensation was wrongly denied, can be filed at cms.rbi.org.in.
8. Re-check the report after correction
A correction made with one credit information company does not automatically update the reports held by the other bureaus, since each receives data independently from lenders. Re-check every report where the error may have been carried.

RBI Complaint Management System (Integrated Ombudsman): https://cms.rbi.org.in

Helpline: 14448 (RBI toll-free, 9:30 a.m.-5:15 p.m. working days)

Good to know

Handled by: The credit institution and the credit information company directly, then the RBI Ombudsman

Who can use this: Any individual whose credit report shows an incorrect loan/credit-card status, wrong personal details, or an account that does not belong to them

This does not cover: This does not cover a genuine, undisputed default -- correcting a report does not erase a real, unpaid debt. It also does not decide whether credit should be extended; a lender remains free to assess a loan application on its own commercial judgment even after a report is corrected.

Time limit: The credit institution and credit information company together have 30 calendar days from the date the dispute is filed to resolve it (21 days for the credit institution to send a correction, and the remainder for the credit information company). (Section 21(3), CICRA 2005; Rule 20(3)(c), CIC Rules, 2006)

Cost: Disputing an entry and filing an RBI Ombudsman complaint are both free. One full credit report per calendar year from each bureau is also free.

You'll need:

The specific credit information company and report date
The exact account/entry believed to be wrong, and why
The lender's name and loan/account number
Any prior correspondence with the lender or credit information company about the error

Documents that help:

The disputed credit report (or its relevant page)
Loan closure letter / No Objection Certificate, if the account was actually closed
Bank statements showing EMI payments, if relevant
Identity proof (Aadhaar/PAN), if the dispute concerns wrongly matched personal details

What happens after: Once corrected, the updated status should reflect in that credit information company's records; a fresh report can confirm the correction. If compensation for delay is due but not paid, that non-payment itself becomes a fresh ground for an RBI Ombudsman complaint.

Legal remedies available

These are the remedies Indian law provides for this kind of situation -- not a recommendation, and not every remedy will apply to your own facts.

Statutory correction within the 30-day window

The credit institution and the credit information company directly

Section 21(3) of CICRA, 2005 and Rule 20(3)(c) of the Credit Information Companies Rules, 2006 together require a disputed entry to be resolved within 30 calendar days of the complaint being filed.

Compensation for delay

The credit institution or credit information company responsible for the delay

RBI's Framework for Compensation to Customers for delayed updation/rectification of credit information provides Rs 100 per calendar day of delay beyond the 30-day window.

Internal ombudsman review

The credit information company's own internal ombudsman

RBI's own directive requires every credit information company to maintain an internal ombudsman to review a complaint the company has rejected in whole or in part.

RBI Ombudsman complaint

Reserve Bank -- Integrated Ombudsman Scheme, 2026

Empowered to award compensation up to Rs 3 lakh for loss of time, expenses and mental anguish, and up to Rs 30 lakh for consequential loss.

Consumer complaint for deficiency in service

District Consumer Disputes Redressal Commission

Consumer commissions have held that a lender wrongly reporting a cleared account as a default, or a credit information company failing to correct it, is a deficiency in service.

Common questions

How many free credit reports am I entitled to each year?

One free full credit report per calendar year from each credit information company, under an RBI directive effective from 1 January 2017 -- since India has four credit information companies, up to four free reports a year in total.

Who is responsible for correcting a wrong entry -- the bank or the credit bureau?

Both. The lender must send a correction to the credit information company within 21 days of being informed, and the credit information company must complete the overall correction within 30 days of the dispute being filed.

What happens if the correction takes longer than 30 days?

Under RBI's compensation framework, effective from 26 April 2024, the complainant becomes entitled to Rs 100 for every calendar day of delay beyond the 30-day window, payable by whichever party caused the delay.

Does correcting my CIBIL report also correct my Experian, Equifax and CRIF High Mark reports?

Not automatically -- each credit information company receives data independently from lenders, so an error may need to be disputed separately with each bureau where it appears.

What if the credit information company rejects my dispute?

Since April 2023, every credit information company has been required to maintain an internal ombudsman to review a complaint it has already rejected in whole or in part; beyond that, the matter can go to the RBI's Integrated Ombudsman.

Can I go to a consumer court instead?

Yes -- consumer commissions have treated a lender's wrongly reported default, or a credit information company's failure to correct it, as a deficiency in service under the Consumer Protection Act, 2019, and have awarded compensation in such cases.

What proof do I need to dispute an entry?

Documents such as a loan closure letter or No Objection Certificate, bank statements showing payments, or identity proof where the dispute concerns wrongly matched personal details.

Can a wrong credit report be used to justify rejecting my loan application?

Since RBI's Master Direction on Reporting of Credit Information (effective progressively from 2025, with credit information companies' own compliance deadline set at 1 July 2026), a lender that rejects a credit application based on a credit information report must give the applicant a clear, specific reason for the rejection -- a vague reason such as 'internal policy' is not sufficient. Indian law does not require the lender to hand over a full copy of the credit report itself as part of this rejection notice.

Is there a time limit to raise a dispute?

The Act and Rules do not set a fixed outer deadline to raise a dispute over an inaccurate entry, but raising it promptly helps track the 30-day resolution window and any compensation due.

Does filing a dispute cost anything?

No -- raising a dispute with a credit information company, and filing an RBI Ombudsman complaint, are both free of cost.

Governing law: Credit Information Companies (Regulation) Act, 2005

Source: Section 21(3), CICRA 2005; Rule 20(3)(c), Credit Information Companies Rules, 2006; RBI Framework for Compensation to Customers for delayed updation/rectification of credit information (effective 26 April 2024); Reserve Bank -- Integrated Ombudsman Scheme, 2026 (in force from 1 July 2026, superseding the 2021 Scheme). Whether the Rs 100/day compensation carries any overall ceiling could not be independently confirmed from RBI's own published framework text and is not asserted here. RBI's Master Direction on Reporting of Credit Information (6 January 2025, credit information companies' own compliance deadline deferred to 1 July 2026).

Aadhrix does not decide which route applies to you. This describes the official process as published — consider an advocate for advice specific to your situation.

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