Since the start of the month of December, there have been a number of significant changes in the nation’s banking industry. With these modifications, consumers will have access to better amenities in banks. On December 1, 2022, the Reserve Bank of India (RBI) launched the Digital Rupee as a pilot project.
As part of a closed-user group test operation, the Reserve Bank of India launched the eagerly anticipated retail digital rupee on December 1.
Additionally, if you currently have a loan or want to apply for one, have a credit card, or receive SMS alerts from a bank, there are significant changes that will take effect in December that you need to be aware of.
Digital rupee launch:
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 thanks to this new technology.
Customers can buy a digital currency from the bank once and then move it between wallets. You can pay it when purchasing any goods as well. In this pilot programme, RBI has eight banks participating. It is intended to begin in its initial phase with State Bank of India (SBI), ICICI Bank (ICICI Bank), Yes Bank (YES Bank), and IDFC First Bank in Mumbai, New Delhi, Bengaluru, and Bhubaneswar.
No balance SMS alert:
Yes Bank has stopped offering the SMS alert service that requires membership from December 1, 2022. The bank previously provided SMS alerts for account balance, debit and credit activities, and credits that could be subscribed to. But all are shut 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.
Repo rate hike soon:
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.
If there is another rate hike, banks will raise interest rates on home loans and other loans tied to the repo rate as an external benchmark, as per the provisions of loan agreements.
Payment Minimums for Credit Cards:
The RBI had requested banks and card-issuing organisations set the minimum amount due on credit cards in October. As a result, cardholders won't have to worry about paying too much or accruing debt. According to the new regulations, credit card issuers must establish a minimum amount due so that payments can be made within a reasonable amount of time.
