CIBIL Score: If you want a job, keep your CIBIL score in mind. If your credit history is bad, your offer letter may also be cancelled
CIBIL Score: If you're dreaming of a job, this update is crucial. In fact, just passing the exam won't be enough. Your CIBIL score and credit history will also play a crucial role. A poor record could even lead to the offer letter being revoked. Read the full story to learn the full details.
Digital Desk- ( CIBIL Score) If you're dreaming of getting a job in a government bank, this news is extremely important for you. Now, simply passing a written exam and interview won't be enough to become an officer or clerk.
The central government has clarified that candidates' CIBIL scores, or credit scores, will also be checked before hiring. If a candidate's financial record is found to be poor, they could be denied the job despite passing the exam.
The government gave important information in Parliament-
Recently, in response to a question in the Rajya Sabha, Minister of State for Finance Pankaj Chaudhary provided important information on this subject.
He stated that in the past three years, approximately 20 candidates have had their appointments cancelled or their offer letters withdrawn simply because they had poor credit histories.
This means that despite passing the exam, they failed to meet the standards in bank record checks. While this number represents only 0.02 percent of total recruitments, this rule certainly provides a clear signal for the future.
What are the rules and how much credit score is required?
This rule is now being strictly enforced in all recruitments conducted through the Institute of Banking Personnel Selection (IBPS). Candidates will be required to demonstrate a good credit history at the time of joining.
According to the government, each bank sets its own policy for a minimum cut-off credit score. Generally, a score of 650 or higher is considered good in the banking sector. Banks may withhold joining if the score is lower than this. This rule was created to promote responsible financial behavior among employees.
Who will be exempted from this rule?
However, this rule shouldn't worry young people who have never taken out a loan. The government has clarified that this requirement won't apply to candidates with no credit history.
If you've never used a credit card or taken out a loan, this rule won't apply to you. This provision primarily applies to those who took out loans but failed to repay them on time, damaging their financial credit.
Why is credit score important?
The banks' logic is simple and clear. Bank employees are entrusted with the responsibility of safeguarding public money and deposits.
Therefore, if someone is negligent with their personal finances and fails to pay their loan EMIs or credit card bills on time, entrusting them with public funds could be considered risky.
Banks believe that only a financially disciplined individual can become a responsible employee.
There is also talk that in the future, not only loans but also payments for bills like electricity and water may be linked to a credit score to assess a person's overall financial responsibility.