Flashback 2023: In the year 2023, some big decisions of RBI had a big impact on the banking sector. Let’s take a look at how they impacted your life.
Flashback 2023: The year 2023 is now coming to an end. This year was very good for investors. Many profitable IPOs came. There was peace on the issue of inflation and GDP figures were also quite good. This passing year is leaving very good signs for the coming year 2024. During this period, the Reserve Bank of India (RBI) also took many decisions in the banking sector. Of these, 4 were most discussed, which changed the direction of the banking sector. Let us take a look at these big decisions.
End of 2000 rupee note
RBI took out the Rs 2000 notes brought during demonetisation from the system this year. The central bank decided to remove them on May 19. However, like demonetization, they were not stopped suddenly. People were given 4 months time to deposit Rs 2000 notes in the bank. Due to this, this note could be easily removed from the banking system.
Hit on unsecured loans like personal loan
RBI first warned non-banking finance companies (NBFC) about the increasing number of personal loans. Then taking action, the risk weight on unsecured loans was increased. Risk weight for NBFCs was increased from 100 to 125. Due to this, the business of NBFC was adversely affected.
UPI transaction limit increased
RBI has increased the transaction limit of UPI (Unified Payment Interface) to promote digital payments in financial services. UPI transaction limit for educational institutions and hospitals was increased from Rs 1 lakh to Rs 5 lakh.
No change in repo rate
Apart from this, while reviewing the monetary policy in December, RBI kept the repo rate intact at 6.5 percent. RBI has kept the repo rate stable for the fifth consecutive time. In the year 2023, the repo rate was increased only in February 2023. Due to this, there was stability on the economic front and more turmoil.
