Negative CIBIL Score - Despite no loan or default, petitioner's CIBIL score is showing negative - Direction to the Banks

Supreme Court Directs Banks to Clarify CIBIL Score Discrepancy for Petitioner Persistent Errors in PAN Card Linkage Affecting Financial Eligibility, Affidavits Sought from Banks

In a significant development, the Supreme Court of India has intervened in a case involving Rajendra Singh Panwar, whose Credit Information Bureau India Limited (CIBIL) score has inexplicably shown negative, despite having no loans or defaults. The issue has persisted since 2020, affecting Panwar's ability to access financial facilities.

The case, titled "Rajendra Singh Panwar v. Jay Prakash," was heard by a bench comprising Justices K.V. Viswanathan and S.V.N. Bhatti. The court addressed the peculiar issue of an incorrect CIBIL score, allegedly due to errors in PAN card linkage. Panwar's PAN card number, BPWPS9528F, was shared by two other individuals with the same name, leading to a reflection of potential defaults onto Panwar's credit history.

Despite corrective action by the Income Tax Department, which issued a new PAN card number, LAWPS9170G, Panwar continued to face a high-risk score. CIBIL, the agency responsible for compiling credit scores, maintained that their reports are based on data provided by banks and that they merely act as a collating agent.

Acknowledging the gravity of the situation, the Supreme Court has directed Punjab National Bank and State Bank of India to file affidavits clarifying Panwar's loan and default status. The court emphasized the need for transparency from these financial institutions to resolve the discrepancies affecting Panwar's financial credibility.

The court has scheduled the next hearing for January 9, 2026, while the personal appearance of the respondents has been dispensed with. This case underscores the critical need for accuracy and accountability in credit reporting systems, impacting individuals' financial rights and opportunities.

Bottom Line:

Credit Information Bureau India Limited (CIBIL) score showing negative and linking issues with old PAN Card despite correction by Income Tax Department - Banks directed to file affidavits to clarify loan and default status of petitioner.

Statutory provision(s): Not explicitly mentioned in the judgment text.

Rajendra Singh Panwar v. Jay Prakash, (SC) : Law Finder Doc id # 2820785