Lookback@2024: Top 5 trends in banking that affected Indians

Lookback@2024: Top 5  trends in banking that affected Indians 

By Hiral Thanawala | December 30, 2024

RBI keeps Repo rate unchanged

The central bank kept the repo rate unchanged in 2024, shifting to a neutral stance in October.

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Greater transparency in loan terms for borrowers

Borrowers can now see effective loan costs with Key Facts Statement (KFS) and Annualised Percentage Rate (APR) disclosures.

The power of KFS

KFS promotes transparency, helping borrowers make informed loan decisions.

Understanding APR

APR provides a complete picture of loan costs, including interest rates, insurance, fees, and other charges.

No penal interest on loan defaults

RBI asks banks not to charge penal interest, allows only reasonable charges on defaults

RBI tightens rules for Peer-to-Peer lending

The new P2P lending regulations require transparency, no credit guarantees, and enhanced data protection.

UDGAM to tackle unclaimed bank deposits

Unclaimed bank deposits held in the Depositors’ Education and Awareness Fund (DEAF), can be tracked via UDGAM Portal. It allows users to track unclaimed deposits across banks.

RBI rolls out Daava Soochak

With Daava Soochak, depositors can now instantly check the status of their claims on the DICGC website.

Banks curtail credit card benefits to curb misuse

Banks revised credit card benefits, capping rewards, introduced minimum spending criteria to use airport lounge access, new fees and charges.

NPCI introduced new feature for shared digital payments

NPCI had launched UPI Circle, a feature that enables two individuals to share a single bank account for digital payments.

Hike in UPI transaction limits

The National Payments Corporation of India (NPCI) raised the per-transaction limit for UPI 123Pay from Rs 5,000 to Rs 10,000. They also increased the UPI Lite balance limit from Rs 2,000 to Rs 5,000.

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