Year Ender 2023: Key Transformational Moves By RBI For The Fintech Sector

As we approach the new year, it is important to take stock of the significant changes introduced by the Reserve Bank of India (RBI) in the banking sector during 2023. These changes have not only shaped the financial landscape but also underscored the dynamics within the RBI. approach

Rs. Demonetization of 2000 notes
An important step by the RBI in 2023 was on May 19, Rs. Demonetization of 2000 notes was announced. While the currency was not stopped immediately, the RBI allowed individuals to withdraw their Rs. 2000 provided a strategic window of four months to return. Notes

Increase the risk weight on unsecured loans
Recognizing the concerns surrounding unsecured loans, the RBI implemented a significant change by increasing the risk weight on unsecured consumer loans.

Non-banking finance companies (NBFCs) saw an increase of 25 per cent, from 100 per cent to 125 per cent. The objective of this proactive step is to tackle the challenges associated with the increase in unsecured loans.

Increase in transaction limit on UPI
To promote financial inclusion, the RBI increased the transaction limit on the Unified Payments Interface (UPI) in 2023. Notably, the transaction limit for educational and hospital payments was earlier Rs. 1 lakh per transaction limit to Rs. 5 lakh has been done. .

There is no change in repo rate
In contrast to other adjustments, the RBI maintained the repo rate at 6.5 percent throughout 2023. The Monetary Policy Committee within the RBI, for the fifth time in a row, chose to keep the repo rate unchanged.