Know what significant changes have been made in banking sector from this month

Since the start of the first week in December, there have been a number of significant changes in the country's banking sector. Customers will be able to access greater facilities in banks due to these adjustments. The Reserve Bank of India (RBI) launched the Digital Rupee pilot project on December 1, 2022. The bank is providing low-interest loans on your credit card if you are considering taking out a loan. Additionally, Yes Bank's SMS alert subscription service has been terminated.

The launch of Digital Rupee:

The retail Digital Rupee (e-R) was introduced by the Reserve Bank of India (RBI) on December 1 as part of the First Pilot Project. The majority of people also refer to it as CBDC or Central Bank Digital Currency. This RBI digital currency was introduced to encourage cashless transactions. A different method of payment will be available with this new system. Customers can buy a digital currency from the bank once and then move it from one wallet to different wallets. You can pay it when purchasing any item as well.

In this pilot project, RBI has eight banks collaborating. It is intended to begin with the State Bank of India (SBI), ICICI Bank, Yes Bank, and IDFC First Bank in its first phase in Mumbai, New Delhi, Bengaluru, and Bhubaneswar.

Change in Repo Rate is anticipated:

On December 7, the RBI is anticipated to announce a change to the repo rate. In order to combat inflation, the Monetary Policy Committee has raised the repo rate to 5.90 per cent. The MPC's goal is to keep inflation below 6%, but it hasn't been accomplished in the last three quarters. In this regard, experts claim that interest rates are not yet at their highest levels and predict that the repo rate would rise by 25 to 50 basis points in December. It is also thought that the cycle of rate increases would soon come to an end.

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Credit card minimum payment:

The minimum amount payable on credit cards was requested to be fixed by banks and card-issuing institutions as per notice by the RBI in October. The holders of the cards will therefore be relieved of the burden of debt and overpaying. In accordance with the new regulations, credit card issuers must establish a minimum amount due in order for the debt to be paid off within a reasonable amount of time.

Balance alert SMS to stop for YES bank:

Starting on December 1, Yes Bank will stop offering the SMS alert service that requires a membership. The bank previously provided SMS alerts for account balance, debit and credit activities, and credits that could be subscribed to. But they will all be shut down now. Due to an increase in fraud and data theft instances, SMS alerts have been prohibited. You can use the bank's online service to take advantage of this feature if you want to keep receiving these SMS alerts in your account.