RBI: People will get relief from rising EMI, Reserve Bank of India is going to make this change soon

Due to the Corona epidemic and the Russia-Ukraine war, the pace of inflation has increased rapidly worldwide. India has also not remained untouched by this. This is a major reason, due to which the rates of repo rate were increased several times by the Reserve Bank of India in the past years. Due to the increase in the repo rate, banks and many financial institutions had to increase the interest rates on home loans, personal loans, and other types of loans to control inflation. Due to the increase in loan rates, the EMI has to be paid more than before. In this series, the Reserve Bank of India is planning to implement a special system, due to which the customers can get a big relief from the rising interest rates of home loans and other types of loans. In this connection, let us know about it in detail -

Under this arrangement of the Reserve Bank, the floating interest rate can be easily converted into a fixed interest rate. New rules will be implemented soon regarding this. This information has been given by the Governor of the Reserve Bank of India, Shaktikanta Das himself. During this, he told that a new structure is being prepared regarding this new system.

RBI Governor Shaktikanta Das said that many cases of unreasonably increasing the floating rate without the consent and knowledge of the customers often come to the fore. However, after the implementation of this new system, banks will not be able to increase it unreasonably.

According to the Reserve Bank of India, all regulated entities will have to follow this new framework. After the implementation of this rule, if there is any change in the loan term or monthly installment. In such a situation, the customers will have to communicate about this first. After the implementation of this new system by the Reserve Bank of India, there will be more transparency in re-fixing the interest rate.

If you want to know about what is the difference between floating and fixed interest rates? In such a situation, let us tell you that the floating interest rates keep changing depending on the market conditions. Whereas the fixed interest rates remain the same for the entire tenure of the loan.

(PC: ANI)