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SBI home loans became expensive, Bank hikes the minimum interest rate

State Bank of India, the largest bank in the country, has increased the interest rate on home loans. Starting June 15, the new rates will apply to home loans. MCLR (Marginal Cost of Lending Rate) has been increased by 0.20 percent. It also became effective on June 15. As a result of the Reserve Bank of India‘s increase in repo rates by 50 basis points, the State Bank of India has taken this step.

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According to a report, now the bank has the minimum interest rate on home loans at 7.55 percent. Those with CIBIL scores above 800 will be eligible for a 7.55 percent home loan. People whose CIBIL score is 750-799 will get a loan at 7.65 percent per annum. Similarly, SBI will give home loans at the rate of 7.75 percent to those with CIBIL scores of 700-749 and 7.85 percent to those with 650-699 scores. Similarly, people whose CIBIL score is between 550 to 649, will have to pay interest at the rate of 8.05 for the home loan. These are floating interest rates and they are repo linked.

MCLR also increased

The bank has also increased the one-year benchmark MCLR from 7.20 percent to 7.40 percent. Personal loans, auto loans, and home loans are almost all linked to MCLR. Because of this, if the repo rate changes, then they also do. From June 15, SBI has also increased its Repo Rate Linked Lending Rate (RLLR). Earlier RLLR was 6.65 percent, which has now been increased to 7.15 percent. From June 15, the new rates have become effective.

FD interest rates also increased

Interest rates on SBI fixed deposits maturing within 211 days of less than Rs 2 crores were increased to 3 years on June 14. Fixed deposit interest rates increased by 20 basis points from 4.40 percent to 4.60 percent for 211-day and shorter-term deposits.

Earlier, on FDs ranging from one year to less than two years, where the bank was paying interest at the rate of 5.10 percent per annum to the customers, now it will get 5.30 percent interest. The bank is now paying 5.35 percent interest on fixed deposits maturing in two to three years.

UPI payments can now also be made with credit cards, subscription payment limits have been raised

Credit Card UPI Payment – The Reserve Bank of India announced big news for millions of users of UPI for online payments and digital transactions. From now on, UPI payments can be made not only from Savings Accounts and Current Accounts but also from Credit Cards. This facility will be launched soon by the Reserve Bank.

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UPI payments will be made using RuPay cards

Following the Monetary Policy Committee meeting in June (2022), RBI Governor Shaktikanta Das shared this information. In order to promote digital transactions, the Reserve Bank plans to offer UPI payments through credit cards.

With RuPay Credit Card, it will be introduced. Other gateways, such as Mastercard and Visa, can also be used to accept credit cards. These changes will make it easier for people who, when needed, withdraw cash from their credit cards or transfer money from them to their banks. In both situations, people are required to pay additional fees and taxes.

Paying this amount can now be done online via e-mandate

Additionally, the Reserve Bank has simplified the process of paying for subscriptions. Whatever the case, whether it was paying for a subscription to an OTT platform, gas bills, or mobile phone bills … RBI mandated electronic mandates for recurring payments of this type.

With the e-mandate now mandatory, the Reserve Bank has set a limit on such transactions. The limit has now been increased three times. Previously, there was a limit of Rs 5000 on this type of transaction. The e-mandate facility is now available for transactions up to Rs 15,000 in value. RBI Governor Das stated that both of these steps are aimed at promoting the digital economy.

Using a credit card to pay with UPI

With the Reserve Bank’s new facility, it is no longer necessary to swipe a credit card when paying. UPI must first be linked to the credit card. After that, the QR code can be scanned to pay directly. The payment process will allow you to choose either a credit card or a debit card. You will receive an OTP on your registered mobile number as soon as you make a payment using the UPI app. You will receive the payment once you provide the OTP.

RBI Repo Rate Hike: Reserve Bank of India hikes repo rate by 0.50%, EMI will be more expensive

Increasing its repo rate by 50 basis points, the Reserve Bank of India (RBI) attempted to control inflation on Wednesday. The repo rate increased from 4.40 percent to 4.90 percent after this increase. On Wednesday, Shaktikanta Das spoke about the decision taken at the Monetary Policy Committee meeting.

Repo rate hiked for the second time in a month

Earlier, the RBI surprised the market with a 40-point increase in the repo rate on May 4. During the same period, the cash reserve ratio also increased by 0.50 percent to 4.5 percent. This has been the second increase in the past month. The country’s inflation rate has consistently been above 6 percent. This step was taken by the RBI to provide relief to the general public.

What will be the effect?

RBI’s increase in the repo rate on behalf of banks will affect crores of customers. As a result of an increase in the repo rate, the loans given by banks to their customers will be more expensive. Increases in interest rates will have an effect on EMIs. As compared to earlier, the EMI of the customers will increase.

What is the Repo Rate?

In the repo market, banks borrow money from the Reserve Bank of India at a rate called the repo rate. The increase in repo rates means that banks will get loans from the RBI at higher rates. There will be an increase in the interest rate on Home Loan, Car Loan Personal Loan, etc., which will directly impact your monthly EMI.

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PNB Bank increases interest rates on other loans, including home loans, check new rates

PNB Interest Rates: A shocking development has occurred amid rising inflation. In case you are a PNB customer and you have taken a home loan or any other loan in the past, this news is very important to you.

After Punjab National Bank, now PNB Housing Finance (PNB Housing) has increased interest rates on loans. In this case, PNB Housing increased the interest rate by 35 basis points, i.e. 0.35 percent, on retail loans and home loans. Rate changes came into effect today, May 9.

Under PNB Housing, customers get a loan both for building and buying a home. It includes both retail and corporate stakes. Customers will now have to pay more EMI for this. In addition, new borrowers will have to pay higher interest rates. PNB Bank had also increased its interest rates earlier.

PNB Housing gave information

PNB Housing has provided detailed information about this. Accordingly, the new interest rates are applicable on different dates. From May 7, 2022, RLLR will apply to new customers. Additionally, the RLLR for existing customers will be 6.90 percent as of June 1, 2022.

The PNB also raised interest rates earlier. In this case, the interest rate has been increased by 0.40 percent to 6.90 percent. PNB has informed the stock market that from June 1, 2022, the RLLR for existing customers will increase from 6.50 percent to 6.90 percent.

RBI hikes repo rate

On May 4, the RBI increased the repo rate from 4 percent to 4.40 percent. Governor Shaktikanta Das noted that due to rising commodity prices and increasing pressure from other fuels, including petrol and diesel, a change in repo rates has become necessary. The interest rates have also been increased by banks since then. The repo-based interest rates of ICICI Bank, Bank of Baroda, and Bank of India have also increased as part of this sequence.

Big crisis on the Central Bank Of India, 600 branches will have to be closed

This is news for you if your account is also with the Public Sector Central Bank of India (CBI). In order to improve its financial position, the bank is planning to close a large number of branches. The news agency Reuters reported that the bank plans to close 13 percent of its branches across the country.

4594 branches across the country

By March 2023, the Central Bank Of India plans to close 600 branches nationwide or merge the loss-making ones. There are 4594 branches of the Central Bank of India across the country.

Listed on PCA List in 2017

Significantly, in the year 2017, many banks, including the Central Bank of India, were included in RBI’s prompt corrective action (PCA) list. Banks experiencing bad financial conditions are included in this list.

12 banks placed in PCA in 2018

The banks included in this list were given a chance to improve their financial situation, but there were many restrictions. In 2018, RBI included 12 banks in its PCA framework. In those days, there were 11 government and one private bank. Who was provided with additional working capital.

Financial position of all other banks improved

Media reports say that, with the exception of the Central Bank of India, all other banks were removed from the PCA list. Despite no improvement in the financial situation, the Central Bank remained on this list. There is a possibility of closing 13 percent of the bank’s branches in order to improve its financial situation.

This government bank was Monetary fined heavily by the RBI, is your account even?

Reserve Bank of India (RBI) imposed a heavy fine on a public sector bank. If you are also a customer of CBI, Central Bank of India, you should read this news. For violating regulations related to protecting customers’ interests, the RBI fined the Central Bank of India Rs 36 lakh. According to the RBI, action against the bank was taken due to a lack of regulatory compliance.

RBI imposed a heavy fine

RBI informed that it investigated it and issued a ‘show-cause notice to the bank, following which RBI made this decision. In fact, the central bank RBI is not satisfied with this answer. RBI said the CBI was not following the rules to protect the interests of its customers. RBI has responded by taking this action.

Detail of discussions of MPC released

The RBI has also released the details of the discussion held at the six-member meeting of the MPC from April 6-8. As mentioned here, the MPC decided at this meeting that the repo rate will remain unchanged. As such, let us inform you that, for the 11th consecutive time, MPC hasn’t changed the repo rate related to the cost of borrowing. In spite of rising inflation in the country, this decision was taken to accelerate the pace of economic growth.

According to the minutes of the meeting, the Governor of the RBI had said, ‘The situation is dynamic and changing rapidly.’ Every time we reevaluate the situation, we should be ready to take the appropriate steps.

Increase in inflation forecast

Also, the RBI raised its inflation forecast for the current fiscal year to 5.7 percent. Let us know that in February it was expected to be 4.5 percent. As a result, the RBI reduced its growth rate forecast for the current financial year from 7.8 percent to 7.2 percent. As a whole, in this meeting, the emphasis was on accelerating economic growth.

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May 2022 Bank Holidays: Banks will remain closed for 13 days in May, RBI releases holiday list

If there is any work to be performed at the bank in May, you need to plan for it now. You won’t have any problems on time if you do that. The Reserve Bank of India (RBI) has announced a list of bank holidays for May 2022.

Banks will be closed for four days at the beginning of the month

According to the RBI’s calendar, there will be four consecutive bank holidays starting in May. Holidays may vary from one state to another depending on the festival. Basically, the list of bank holidays is issued by the RBI on a four-year basis. These are the festivals celebrated across the country and state by state.

According to the state also some holidays

Apart from the national holidays, there are also some holidays in each state. A report states that out of 31 days in different zones in the month of May, banks will be closed for 13 days.

On behalf of banks, customers are encouraged to plan ahead for all holidays before going to the bank in May. Customers should note the important holidays on which branches will be closed in their city or state.

Bank Holidays in May 2022

1 May 2022: Labor Day / Maharashtra Day. Banks closed across the country. Sunday will also be a holiday on this day.
2 May 2022: Maharishi Parshuram Jayanti – Holiday in many states
3 May 2022: Eid-ul-Fitr, Basava Jayanti (Karnataka)
4th May 2022: Eid-ul-Fitr, (Telangana)
9 May 2022: Guru Rabindranath Jayanti – West Bengal and Tripura
14 May 2022: Bank holiday on second Saturday
16 May 2022: Mercury Full Moon
24 May 2022: Kazi Nazrul Ismal Birthday – Sikkim
28 May 2022: Banks holiday on 4th Saturday

List of Weekend Bank Holidays in May 2022

1 May 2022: Sunday
8 May 2022: Sunday
15 May 2022: Sunday
22 May 2022: Sunday
29 May 2022: Sunday

RBI Monetary Policy: Reserve Bank did not change the repo rate for the 11th time

Reserve Bank of India‘s economic policy was announced on Friday. For the 11th time in a row, the Federal Reserve has not changed its key interest rates. At 4%, the Repo rate remains unchanged. Likewise, the MSF rate and the Bank rate remain at 4.25%. Reverse repo rates remain at 3.5%.

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However, the governor of the RBI expressed concern about inflation. According to Das, the repo rate remains at 4 percent for the time being. Increasing the flow of credit will alleviate the pressure on the economy caused by the pandemic.

According to the RBI Governor, the Indian economy is slowly recovering from the pandemic-induced slowdown. Crude oil prices remain elevated globally. Economic conditions are satisfactory due to large foreign exchange reserves; The Reserve Bank is fully prepared to ‘rescue’ the economy. India’s RBI governor said that the country is walking on a different path than other countries in the world.

Among major economies, India will grow at the fastest rate according to the IMF. A massive vaccination program and continued financial and monetary support will lead to this recovery.

What is Repo Rate

This is how you can understand the repo rate. We take out loans from banks, and we must pay interest. The Reserve Bank of India (RBI) provides banks with loans to run their daily operations, which are similar to the banking industry. Whenever the Reserve Bank loans money to the banks, it charges interest at a rate called the Repo Rate.

The impact of repo rates on the common man

By borrowing at low-interest rates, banks are able to offer cheap loans to their customers, since their repo rate will be low. A higher repo rate would make it more difficult for banks to offer loans, which would increase the cost of loans for customers.

Bank Holiday March 2022: Banks will remain closed for 13 days in March, check the full list here

Bank holidays often affect the general public. Since the bank always makes the public aware of the holidays and issues a list, it always keeps it current on holidays throughout the month. Meanwhile, if you have any work related to the bank, then hurry up because there are several festivals happening in March, such as Shivratri and Holi. As a result, banks in March will close for the entire 13 days.

A 13-day break

RBI has released a list of bank holidays. The 13-day holiday in March includes four Sundays. Aside from this, each state has its own list of holidays.

The bank holidays in March

1.) Mahashivratri falls on March 1, which means all places banks except Agartala, Aizawl, Chennai, Gangtok, Guwahati, Imphal, Kolkata, New Delhi, Panaji, Patna, and Shillong will be closed.

2.) Due to Losar, banks in Gangtok will be closed on March 3.

3.) As a result of Chapchar Kut, all banks in Aizawl will be closed on March 4.

4.) On March 17, Dehradun, Kanpur, Lucknow, and Ranchi’s bank are closed due to Holika Dahan.

5.) The banks are closed due to Holi on March 18.

6.) In Bhubaneswar, Imphal, and Patna, banks were closed on 19th March due to Holi/Yaosang

7.) On 22nd March, banks are closed in Patna due to Bihar Diwas.

Weekday Holiday

6 March: Sunday
12 March: Monthly, second Saturday
13 March: Sunday
20 March: Sunday
26 March: Monthly, 4th Saturday
27 March: Sunday

Union Budget 2022: 30% tax to be paid on crypto in India, RBI will bring its own digital currency

Union Budget 2022: In her budget speech, the Union’s finance minister made a major announcement about digital currencies. A digital currency will be launched by the Reserve Bank of India (RBI) this year. It is expected to be released by the end of 2022 or early in 2023. The Central Bank Digital Currency is based on blockchain technology, among other technologies. India’s economy, therefore, stands to benefit greatly from the arrival of the Indian Digital Currency.

The transfer of any digital asset will also be taxed at 30 percent, as Sitharaman explained during her budget speech. Nirmala Sitharaman points out that virtual digital assets have seen an increase in transactions. As a result, a special taxation system for virtual digital assets is required. I propose a 30 percent tax on all income generated from the transfer of a virtual digital asset. A deduction shall not be allowed for any expenditure or element while computing such income, except for the cost of acquisition for any loss arising from a transfer of virtual digital assets, which cannot be set off against any loss.”

The Finance Minister went on to say that with this budget India would lay the groundwork for the next 25 years. Growth is forecast at 9.2% for the next fiscal year. According to the latest estimates, the Indian economy has grown by 9.2% for the current year.

Unlike cryptocurrencies, digital currencies are more stable and regulated. Unlike digital currencies issued by governments, crypto-currencies and stable coins are decentralized.

According to an analysis by the Financial Action Task Force (FATF), a non-profit organization dedicated to preventing money laundering and terrorism financing, cryptocurrencies offer better privacy than mainstream digital payment methods. These services can be misused by terrorist organizations and criminals for the wrong reasons.

Decentralized cryptocurrencies make it difficult for central banks to control an economy’s money supply since they do not have their most crucial tools.