Right now people’s home loan EMI will not be reduced. People will have to wait for cheap loans. The Reserve Bank of India has once again decided to keep the repo rate stable. The Monetary Policy Committee has decided to keep the repo rate stable at 6.50 percent. The meeting of the Monetary Policy Committee headed by Reserve Bank Governor Shaktikanta Das started from April 3.

Today i.e. on April 5, RBI Governor Shaktikanta Das has announced the results of the Monetary Review Meeting (RBI MPC Meeting 2024). The central bank has once again kept the repo rate unchanged and has not made any changes in it. RBI has not cut the repo rate for a long time. Many experts were already expecting that the panel will not make any changes in the repo rate this time too. Earlier, in the last meeting of FY 24, the MPC had not made any change in the repo rate for the sixth consecutive time. It was decided to keep it stable at 6.50 percent.

Rates have been stable for a year

RBI has kept the repo rate constant at 6.50 percent for almost a year. RBI had last increased the repo rate by 0.25 percent from 6.25 percent to 6.50 percent in February 2023 last year. At the same time, the retail inflation rate in December 2023 was at the level of 5.69 percent. In such a situation, this time also the possibility of change in repo rate was less. Real estate giants had also expressed hope that keeping in mind the developers and home buyers, RBI will keep the repo rate stable.

What is repo rate?

Repo rate is the rate at which the Reserve Bank of India gives loans to banks. The central bank introduces monetary policy six times in a financial year. In this he keeps making changes according to his needs. The Central Bank takes decisions keeping many things in mind. The central bank tries to keep inflation under control through repo rate. A sudden increase in inflation poses a threat to the economy. In such a situation, controlling inflation is necessary for good growth of the economy. The increase or decrease in repo rate has a direct impact on the interest rates of banks’ loans. When RBI increases the repo rate, banks increase the interest rates on all types of loans like home, personal, auto etc. Similarly, when the repo rate decreases, banks reduce the interest rates on loans.

Senior Citizens FD Rate: In this scheme, senior citizens will get guaranteed return of 8.05%, loan facility will also be available.

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The problems faced by farmers and small businessmen in getting loans are going to go away. The Reserve Bank has prepared a new scheme for this. RBI is thinking of bringing a UPI-like platform for loans to farmers and MSMEs.

Farmers and MSMEs face problems

This proposed credit disbursal platform will work in the same way as UPI works for digital payments. This will simplify the loan process for farmers and MSAEs. RBI believes that consumer loans through digital interface are now common, but farmers and small businessmen still have to visit banks to get loans.

It will be possible to get a loan in a jiffy

According to RBI, the proposed credit platform will make the loan process easier for farmers and MSMEs. At present, farmers have to make rounds of land record keeping departments along with banks to get agricultural loan or Kisan Credit Card. All these problems will be solved with the proposed platform and it will be possible to get loan in a jiffy.

Work can be done with this platform

This work can be possible through Public Tech Platform for Financial Credit i.e. PTPFC. This platform is currently working on products like Agri Loan, Kisan Credit Card, Small MSME Loan. Lending banks, financial institutions and startups can be linked with this platform. Agri and MSME loans worth about Rs 3,500 crore have been distributed so far through this platform.

Payment of public transport through PPI

Apart from this, the Reserve Bank has also made a change regarding PPI i.e. prepaid payment instruments. According to the Central Bank, now payment for public transport system can be done through PPIs issued by banks and non-banking institutions.

The Reserve Bank said in a notification that keeping in mind the convenience of people using public transport, it has been decided to allow banks and non-banking institutions to introduce PPI for payment in various public transport systems.

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HDFC Bank, the country’s largest private bank, has made loans costlier. Due to this decision of the bank, it is necessary to increase the EMI of the people. HDFC Bank has increased the MCLR (Marginal Cost Of Lending Rates) by 15 basis points. The increase in the new rates has come into effect from July 7, 2023 itself.

If you look at the increase in HDFC Bank’s MCLR, the overnight MCLR has been increased by 15 basis points to 8.25 per cent, which was earlier 8.10 per cent. The one month MCLR has been increased from 8.20 per cent to 8.30 per cent with an increase of 10 basis points.

The three-month rate has been increased by 10 basis points to 8.60 percent, the six-month rate has been increased by 5 basis points to 8.90 percent. There has been no change in the MCLR for tenures above one year. The MCLR with a tenure of one year is currently 9.05 per cent. Most of the consumer loans of HDFC Bank are linked with this.

HDFC Bank’s decision to increase MCLR will not affect home loan interest rates. Only old personal loans and floating auto loans which are based on MCLR will have an impact on the interest rate. Home loans of banks are linked to the repo rate.

HDFC Bank’s decision to increase MCLR is surprising. Because RBI has not made any change in the policy rates in the last two Monetary Policy Committee meetings. And experts believe that even in the policy meeting of August, RBI can maintain the policy rates at the existing rates.

However, this month is very special for HDFC Bank. Housing finance company HDFC has been merged with HDFC Bank from July 1, 2023. Trading in HDFC shares will stop on the stock exchange from July 13.

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The ministry has said this in view of the global financial situation arising after the failure of some banks in America and Europe. According to sources, there is a need for integrated market data on pledged securities to take timely action.

Finance Ministry said this

Besides, in a recent meeting with Finance Minister Nirmala Sitharaman, heads of public sector banks were asked to manage loans given to companies, including pledged shares. Sources said that the finance ministry also said that it would be prudent to increase the stress-testing of loan accounts of large companies.

Banks should also pay attention to small deposits – Ministry of Finance

Public sector banks were also advised to focus on small deposits instead of large and corporate deposits and stay away from the discretionary pricing system. The Finance Minister last week reviewed public sector banks on the basis of various financial parameters. He urged banks to remain vigilant about interest rate risks and stress test the situation regularly.

Recently held a meeting

On Saturday, Finance Minister Nirmala Sitharaman had a big meeting with the heads of public sector banks. The Finance Minister had told all the public sector banks that they should take preventive measures against any anticipated shock. Even after the meeting, the Finance Ministry had said that all major financial parameters indicate stable and flexible public sector banks. At the same time, banks had also assured Finance Minister Nirmala Sitharaman that the Indian banking system is strong and there is nothing to worry about at the moment.

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Banks have the right to recover their money. For this it is necessary to follow the guidelines of RBI. According to the Reserve Bank, banks can take the services of recovery agents to recover their money, but these limits cannot be exceeded. The Supreme Court has also criminalized intimidation, misbehavior and harassment through agents for recovery of loans.

If the recovery agent harass, threatens, assaults you, then you have the right to complain to the bank as well as to the police. Failure to pay the installment comes under the purview of civil dispute. In such a situation, the bank or any of its recovery agents cannot arbitrarily with the defaulter.

Time to go to the defaulter’s house and call

According to the rules, the time for visiting the defaulter’s house and calling the bank officer or recovery agent is from 7 am to 7 pm. After this, you can make a complaint to the bank or RBI about calling and coming to the agent’s house.

If a person does not deposit the installment for 90 days, the bank has to issue a notice to the bank. By issuing a notice, the bank will give time to the defaulter to deposit the loan within 60 days. Even during this period, if he does not deposit the installment, then the bank can start the process of recovery of the loan.

Recovery agent’s arbitrariness

When someone fails to repay the installment, he accepts his mistake and bears the arbitrariness of the bank or recovery agent, but, just as banks have the right to recover the loan, in the same way the borrower has been given the right by RBI. If people are aware of their rights then recovery agents will not be able to harass them. In case of harassment, complaint can be made to the police and consumer court and seek damages.

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At present, the rate of BPLR is 12.75 percent. This rate was last revised in June. At that time also it was increased after the increase in the repo rate by the Reserve Bank. The revised BPLR of the bank will be 13.45 percent (annual) with effect from September 15, 2022. SBI has given this information on its website.

Base rate also increased by 70 basis points The bank had increased its base rate by the same amount on Tuesday. After this, the EMI of the customers taking loan on the base rate has also increased. However, this is the old bench march on which banks give loans. Now most banks give loans on the basis of External Benchmark Based Lending Rate (EBLR) or Repo Linked Lending Rate (RLLR).

The Reserve Bank of India (RBI) had recently increased the repo rate several times, after which public and private sector banks are increasing their lending rates. With the increase in the repo rate, the repayment of the bank’s loan is getting expensive.

RBI meeting from September 28 to September 30

The next three-day monetary policy meeting of the RBI is to be held from September 28 to September 30. It is estimated that the Reserve Bank may hike the rate again to control inflation. SBI has increased its benchmark lending rates just a few weeks before the monetary policy meeting of the Reserve Bank of India. The bank revises both BPLR and Base Rate on a quarterly basis.

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The country’s number one private bank HDFC Bank has increased the interest rates on all its types of loans. According to the information received, the bank has increased by 5-10 basis points.

HDFC Bank has increased its Marginal Cost of Funds Based Lending Rate (MCLR) by 5-10 basis points (bps) for all loan tenures. This increase is applicable with immediate effect from today ie 8 August 2022.

The bank has taken this decision after the Reserve Bank of India (RBI) announced an increase of 50 basis points (0.50 per cent) in the repo rate. In the MPC meeting of RBI held in August, such a decision was taken with the aim of controlling inflation.

Repo rate hiked for the third time in a row Central bank Governor Shaktikanta Das announced the results of the Monetary Policy Committee meeting (RBI MPC Meeting Today) on Friday, August 5 and told that the repo rate will increase by 0.50 percent (Repo). Rate Hike) has been done. After this hike, the effective repo rate has increased to 5.40 percent. RBI has increased the repo rate for the third time in a row this year.

The RBI had earlier suddenly increased the repo rate by 0.50 per cent in May 2022, while it was increased by 0.40 per cent in the June 2022 MPC meeting. In this way, there has been a total increase of 1.40 percent in the repo rate since May, which is the highest in the last two and a half years. With this increase, all types of loans including your home loan, car loan and personal loan will become expensive. Banks will also soon start increasing their interest rates (Bank Rates Hike).

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