If you think that CIBIL score only affects your loan or credit card approval, then you are wrong. A recent question asked in Parliament revealed that a low credit score can also affect your employment opportunities. Especially for those getting a job in the banking sector, it has become an important condition.
The CIBIL score is issued by TransUnion CIBIL Limited, formerly known as Credit Information Bureau (India) Limited. It’s a three-digit number ranging from 300 to 900. The score shows an individual’s creditworthiness based on their credit history. It must be noted here that there are three more credit bureaus in the country other than TransUnion CIBIL which collect and maintain credit data to help lenders identify credit behaviour of borrowers. These are – Experian, Equifax, and CRIF High Mark.
Minimum CIBIL score of 650 or more required for banking jobs?
Rajya Sabha MP Dr. John Brittas asked the Finance Ministry whether it has been made mandatory for candidates to maintain a minimum CIBIL score of 650 or more for banking jobs. Also, it was asked whether the government is considering the problems of poor and middle class candidates with this condition, including many students who are facing difficulty in repaying education loans.
Here is what government said on CIBIL score for jobs matter
Minister of State for Finance Pankaj Chaudhary, while responding, said that IBPS (Institute of Banking Personnel Selection), which conducts the recruitment examination of nationalized banks, had put this condition in the recruitment process of 2023-24 (CRP-XIII). Under this, candidates applying for banking jobs were required to have a CIBIL score of at least 650 and a healthy credit history.
However, the minister clarified that this condition has been removed from the recruitment process of 2024-25 (CRP-XIV). Now it is not necessary for the candidates to bring this score at the time of application, but at the time of joining they will have to show a healthy credit history.
If a candidate’s CIBIL record is not updated, then he will have to get NOC from the lender, otherwise the offer letter can also be canceled. The final decision will be in the hands of the concerned bank.
Banks’ argument on the matter
The government also clarified that nationalised banks are board-governed entities and that they had introduced the rule to inculcate financial discipline and credit worthiness in incoming employees. Responsible financial behaviour is a must, especially in positions where employees are tasked with handling public money and transactions.
What was the lesson?
This case makes it clear that your credit history is now important not just for getting a loan, but also for getting a job. A good CIBIL score is proof of your financial credibility, and in sectors like banking, it can even be used to determine your job eligibility.