Year-Ender 2023: RBI Makes These Changes In Bank Transactions In Ongoing Year - Check

New Delhi: As we approach the new year, it's crucial to take stock of the significant shifts initiated by the Reserve Bank of India (RBI) in the banking sector throughout 2023. These changes have not only shaped the financial landscape but also underscored the dynamism within the RBI's approach.

Demonetisation Of Rs 2000 Notes

A pivotal move by the RBI in 2023 was the announcement of the demonetization of the Rs 2000 note on May 19. While an immediate halt to circulation didn't occur, the RBI provided a strategic four-month window for individuals to return their Rs 2000 notes. (Also Read: Bank Holidays January 2024: Check City-Wise List And Number Of Days Bank Branches Will Remain Closed)

Increased Risk Weight On Unsecured Loans

Recognizing concerns surrounding unsecured loans, the RBI implemented a substantial change by raising the risk weight on unsecured consumer loans. (Also Read: 'Aaj Realize Hua That Starbucks Is...:' Anupam Mittal Criticises Starbucks For THIS Reason)

Non-Banking Finance Companies (NBFCs) saw a 25 percent increase, moving from 100 percent to 125 percent. This proactive measure aimed to address challenges associated with the surge in unsecured loans.

Increased Transaction Limit On UPI

In a bid to promote financial inclusivity, the RBI raised the transaction limit on the Unified Payment Interface (UPI) in 2023. Notably, the transaction limit for educational and hospital payments surged to Rs 5 lakh from the earlier cap of Rs 1 lakh per transaction. 

No Change In The 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 consecutive time, opted to keep the repo rate unchanged.

The last repo rate hike was reported in February 2023. The repo rate, a key tool in monetary policy, influences borrowing costs and overall economic conditions.