In 2024, the Reserve Bank of India (RBI) did not reduce interest rates but introduced many important steps to help bank customers. From improving clarity in loan processes to adding new features in digital payments, RBI made several changes. These steps have made life easier for people. Some of these changes you may remember, but others might have been forgotten. Let’s review the important changes and suggestions introduced in 2024.
This year, RBI made it mandatory for banks and financial institutions to provide a Key Facts Statement (KFS) and Annualised Percentage Rate (APR). The KFS shows the total cost of a loan in a clear and simple way. The APR includes not just the interest rate but also other costs like insurance premiums, legal fees, and extra charges. This change helps borrowers understand the full cost of their loans and make better decisions.
Low Penalty Interest on Loan Defaults
Before 2024, banks charged high penalties if loans were not paid on time. Now, RBI has banned this. Banks can only charge interest on the unpaid amount, and the penalty cannot be very high. This step helps reduce problems for loan takers.
Stricter Rules for P2P Lending Platforms
RBI set new rules for Peer-to-Peer (P2P) lending platforms. These platforms must now make transactions between borrowers and lenders more secure and transparent. They also have to share monthly reports about lender losses and portfolio performance.
Tracking Unclaimed Deposits Made Easier
RBI’s annual report for 2023-24 said banks have ₹78,213 crore in unclaimed deposits. To help customers track their old accounts, RBI launched the UDGAM portal, where people can check and get information easily.
Faster Insurance Claim Process
The Claim Indicator tool helps customers track claims from failed banks online. Claims of up to ₹5 lakh can now be processed within 90 days, much faster than the previous system.
Reduction in Credit Card Rewards
In 2024, banks like ICICI, HDFC, and SBI reduced reward points and other credit card benefits. This was done to prevent misuse and promote responsible use of credit cards.
Improved UPI Payment Limits
RBI increased UPI payment limits to boost digital transactions. The limit for UPI 123Pay is ₹10,000, while UPI Lite has a limit of ₹5,000. These changes are especially helpful for rural and elderly users.