CIBIL Dispute Resolution Time: How Long Does It Take to Update?
After CIBIL Dispute Resolution, how much time does it take for CIBIL to update? This is a very common question. Most people raise a dispute in CIBIL when they see some error or problem in their CIBIL report, and they notice that error when they apply for a loan and the loan application gets rejected. Now, when they raise a dispute in CIBIL, a question comes to their mind that the faster it gets resolved, the faster they will get their loan. But it does not always happen that the CIBIL dispute gets resolved quickly.
CIBIL does not get updated quickly. Why does it not happen? Here I will explain what is the process when you raise a dispute in CIBIL. What is the mechanism behind it—if you understand that, then you will know why the problem is not always solved quickly. And in the end, we will give you some tips which you can follow to speed up this process.
What is a CIBIL dispute?
If there is any error or problem visible in your CIBIL report, the complaint process that you do in CIBIL for that is called a CIBIL dispute. Now, when you raise a dispute online in CIBIL, you receive a message and it mentions the total turnaround time within 30 days. It takes 30 days to resolve the dispute.
What happens after raising a dispute for CIBIL errors?
1. Submission and categorisation
When you raise a dispute in CIBIL, at that time your CIBIL report shows a remark like “account under dispute” and the date is also mentioned there. As soon as you raise a dispute, CIBIL records that data in its system. This takes some time. After that, CIBIL forwards your complaint to the bank because CIBIL itself cannot change any data. The issue you have with a bank or a lending institution, your complaint is forwarded there for verification.
2. The bank’s internal audit
Here, the complaint forwarded by CIBIL is handled by a department in the bank called the CIBIL cell. But the CIBIL cell does not always have all the data. So what they do is forward the complaint to the account department or some other department for verification. This process can take a lot of time. Out of the total 30 days given, the bank can take up to 21 days, and within this time the bank sends the data back to CIBIL. Sometimes they send it in a very short time, and sometimes they take the full 21 days.
3. Resolution and synchronisation
Once the bank forwards the data to CIBIL, CIBIL processes that data for a short time. It does not take too long. As soon as the data gets updated in CIBIL, your report is rectified immediately. But if the bank denies your request—for example, if you raised a complaint to change the data and the bank denies it—then CIBIL keeps the existing data and informs you that your complaint has been rejected. Also, the remarks that were mentioned earlier get removed.
Factors that can influence the dispute resolution speed
In different cases, the time taken for the dispute resolution process can vary. For example, if your issue is with a large private bank, a popular bank like HDFC Bank or ICICI Bank, and you raise a dispute in CIBIL, then the problem gets resolved very quickly. This is because in April 2024, RBI implemented a new guideline.
If it takes more than 30 days, then a penalty of ₹100 per day has to be paid jointly by CIBIL and the bank for the delay. Here, the compensation framework is a bit different. CIBIL is given 9 days, and the bank is given 21 days. So if the bank takes more than 21 days, the bank has to pay the penalty. That is why most large private banks are well-organized internally. They have created proper systems. As soon as they receive a complaint, they resolve the issue quickly and report back to CIBIL.
But in the case of PSU banks or smaller cooperative banks, it can take the full 30 days. In some cases, like cooperative banks, it may take even more time. And in small NBFCs, especially those that are already closed or whose licenses have been cancelled, it can take an unlimited amount of time.
Complexity of the dispute
The time also depends on the type of problem. Suppose it is a very simple issue, like a data mixing problem. Being a CIBIL rectification agency, we have seen that sometimes the problem gets resolved within a week. There are also cases where the dispute gets resolved within two days. But if the issue is something complex, like a suit filed case, then it can take a lot more time.
Critical tips for a faster resolution of your CIBIL dispute
Being a CIBIL activation agency, initially we follow two processes to raise a dispute.
One is logging into the CIBIL portal and raising a dispute. The second method is filling a form on the CIBIL portal, writing the details properly, and attaching documents to raise a complaint. The second method is internally called a written complaint because here you can mention everything in detail regarding your problem. Along with that, you can also attach documents.
As I already explained, when you raise a dispute in CIBIL, it forwards the complaint to the bank for verification. Now in the second method, where we send documents, you should attach payment receipts, no due certificate, and loan account statement if required. This helps the bank understand that your loan is already closed or that they have not updated it on time. By checking the documents you have submitted, they understand the issue clearly.
Because of this, the bank reports faster to CIBIL and the problem also gets resolved quickly. However, you can follow the first method as well by logging into the CIBIL portal and raising a dispute. Problems do get resolved there too. But make sure to follow the second method as well. By attaching documents and raising a complaint, your issue can be resolved faster. Also, after raising the complaint, make sure to follow up. You can call CIBIL for follow-up and also contact the bank. It is even better if you send a separate email to the bank. Along with that, you can attach payment receipts, no due certificate, and loan account statement in the email as well. This can help you and speed up the process.
ScoreRocket Team Support
Now you understand how much time it takes for CIBIL dispute resolution, why it takes more time, and how you can make this process faster. If there is any error or problem in your CIBIL report and you want to ask us anything, you can contact us.
If you have applied for a loan in a bank and the bank manager has rejected your loan application, saying that your CIBIL score is low or there is some issue in your report, but you are not able to understand where the problem is after reading the report—then in that case, you can send us your CIBIL report.
Our team will analyze your report and tell you where the problem is and why your CIBIL score is low. This report analysis is absolutely free. After that, if you want to proceed with report activation, you can also take our service. Our number is given below. Contact us today on this number. You can contact anytime.