My CIBIL score is wrong due to a bank error. How do I fix it legally?

Credit bureaus (also called Credit Information Companies or CICs) are regulated by the Reserve Bank of India under the Credit Information Companies (Regulation) Act, 2005 (CICRA) and the Credit Information Companies Regulations, 2006.

There are four licensed CICs in India:

(1) TransUnion CIBIL — the largest and oldest;
(2) Experian Credit Information;
(3) Equifax Credit Information Services;
(4) CRIF High Mark.

All four receive data from your bank/NBFC ('Credit Institutions') and compile your credit report. Each may show slightly different scores because the data sets differ. You are entitled to one free credit report annually from each CIC under Section 28 of the CICRA. Check all four periodically — errors in one may not appear in the others.

Step 1 — Pull your credit report from each CIC. CIBIL is at cibil.com; Experian, Equifax, CRIF have their own portals. The free annual report is available on request.

Step 2 — Identify the inaccuracy — wrong personal details, an account that's not yours, a paid loan still shown as outstanding, a closed account showing overdue.

Step 3 — File an online dispute on the CIC's portal (CIBIL has a dedicated Dispute Resolution portal). Specify the error and attach proof.

Step 4 — Notify the bank/NBFC separately. Write to the Nodal Officer with documentary proof (loan closure letter, NOC, payment receipt). The CIC can only update what the bank reports, so the bank's correction is essential.

Step 5 — Track resolution within 30 days. The CIC will mark the entry as 'Under Dispute' during investigation.

The RBI's circular dated 26 October 2023 (effective 26 April 2024) on 'Strengthening of Customer Service' sets binding timelines:

(1) 21 days — the Credit Institution (bank/NBFC) must investigate the dispute and confirm the correct position;
(2) 9 days thereafter — the CIC must update the credit report;
(3) Total: 30 days from raising the dispute.

If the bank doesn't respond, the CIC must still update based on the consumer's proof after the 30-day window. The bank is also required to send periodic Status of the Dispute notifications to the consumer.

The Right to Information Act, 2005 can be used to compel disclosure of internal records if you suspect the bank is delaying without basis. For more on RTI, see our RTI guide.

Yes — ₹100 per day of delay beyond the 30-day resolution window, under the RBI's October 2023 circular. The compensation is automatic and binding — the bank cannot refuse if the delay is documented.

Computation: If your dispute took 60 days to resolve, you are entitled to ₹100 × (60 - 30) = ₹3,000 compensation.

Beyond this statutory compensation, you can also claim:

(1) Actual losses — if a loan/credit card was rejected because of the incorrect entry, claim the differential interest cost you incurred, or the loss of the specific opportunity;
(2) Compensation for mental agony through the Consumer Forum or Ombudsman — typically ₹5,000-₹50,000;
(3) Punitive damages for wilful denial — courts have awarded up to ₹5 lakh in egregious cases.

Document everything — rejection letters, screenshots of the wrong entry, communication trail.

Escalate in this sequence:

(1) Bank's internal grievance redressal — Nodal Officer first, then the Principal Nodal Officer. Wait the prescribed time (typically 30 days);
(2) RBI Integrated Ombudsman — file online at cms.rbi.org.in. The Ombudsman has jurisdiction over Credit Information Companies. Can direct correction, refund of charges, and compensation up to ₹20 lakh + ₹1 lakh for mental agony. Procedure is free and online;
(3) Consumer Commission — file via E-Daakhil under the Consumer Protection Act, 2019 for deficiency of service. See our consumer complaint guide;
(4) Civil suit for damages — particularly if you can prove specific loss (rejected home loan, denied credit card, lost business opportunity);
(5) Writ petition in the High Court for systemic non-compliance with RBI directions.

Engage a reputable, specialised banking/consumer lawyer for substantial claims.