TOP PERSONAL FINANCE NEWS IN INDIA YOU SHOULD KNOW ABOUT
If there is one thing that we have learned from the COVID-19 pandemic, it is to be prepared for the unforeseeable. In the Indian context, one of the essential aspects of being prepared financially is to stay informed about the latest developments in personal finance. This article aims to highlight the top personal finance news in India that you should know about:
1. Moratorium on Loan Repayment: In light of the pandemic, the Reserve Bank of India (RBI) announced a moratorium on loan repayment for three months (March to May 2020) to alleviate financial stress on borrowers. However, it is essential to note that interest continues to accrue during the moratorium, which leads to a higher burden of repayment in the long run.
2. Reduction in Interest Rates: The RBI reduced the repo rate (the interest rate at which it lends money to commercial banks) by 115 basis points in 2020 to boost the economy during the pandemic. As a result, lending rates have also decreased, making it a good time to avail of loans or refinance existing ones.
3. Introduction of the Aatmanirbhar Bharat Abhiyaan: The Indian government launched the Aatmanirbhar Bharat Abhiyaan (Self-Reliant India Scheme) to promote domestic manufacturing and boost the economy. It includes measures such as collateral-free loans for MSMEs, special liquidity schemes for NBFCs and HFCs, and support for farmers and the agriculture sector.
4. Digitization of Transactions: COVID-19 has accelerated the adoption of digital transactions, including online payments, e-wallets, and mobile banking. It has become more crucial than ever to embrace these digital modes of transactions to ensure safety and convenience while also contributing to the growth of the digital economy.
5. Changes in Income Tax Slabs: The Union Budget 2021 introduced changes in the income tax slabs, which include the introduction of a new optional tax regime with lower tax rates for individuals who chose to forego some tax deductions and exemptions. It is crucial to evaluate which tax regime is more beneficial based on individual financial circumstances.
In conclusion, staying up-to-date with the latest personal finance news in India is vital for making informed financial decisions. Keeping abreast of the developments mentioned above is a good starting point to navigate the ever-changing financial landscape in India.
