You should be aware of the significant modifications that the RBI made to bank transactions

 You should be aware of the significant modifications that the RBI made to bank transactions

You should be aware of the significant modifications that the RBI made to bank transactions

Flashback 2023: The banking industry was greatly impacted by a few significant judgments made by the RBI in 2023. Let's examine the effects they have on your life.

Flashback 2023: We are now nearing the conclusion of 2023. An excellent year for investors was this one. There were some successful IPOs. The debate about inflation was resolved, and the GDP data was also quite strong. Excellent indications are being left for the next year of 2024 by this past year. The Reserve Bank of India (RBI) made a number of decisions pertaining to the banking industry during this time. Four of them were the most talked about, and they altered the course of the banking industry. Let's examine these significant choices.

2000 rupee note's expiration

This year, the RBI removed the Rs. 2000 notes that were introduced during the demonetisation process. On May 19, the central bank decided to do rid of them. Like demonetization, they did not end abruptly, however. Four months were allotted for people to deposit Rs. 2000 notes in the bank. This made it simple to remove the note from the financial system.

attack on personal loans, which are unsecured debts

The increase in personal loans was the first concern raised by the RBI to non-banking finance firms (NBFC). The risk weight on unsecured loans was then raised as a result of action. The NBFC risk weight was raised from 100 to 125. This has a negative impact on NBFC's operations.

The UPI transaction limit has been raised.

To encourage digital payments in financial services, the Reserve Bank of India has raised the transaction limit for the Unified Payment Interface, or UPI. The ceiling on UPI transactions for hospitals and educational institutions has been raised from Rs 1 lakh to Rs 5 lakh.

The repo rate remains unchanged.

Aside from this, the RBI maintained the repo rate at 6.5 percent while evaluating the monetary policy in December. For the sixth time in a row, the RBI has maintained the repo rate in place. Only in February of 2023 was the repo rate raised in that year. As a result, there was increased unrest and economic stability.