RBI ACTIONS TREND

[Zacobite]

Personal Views basis available information RBI has 4 Priorities that it has picked up and is driving aggressively that we are now seeing assertive actions on :

1) Information Security / Privacy : Stringent actions on co-branded cards is an example - to avoid non financial entities to access financial information, local server mandate fir amex, mastercard etc.
2) National Security : KYC / fraud account, rotation of money that can be used for anti-national activities e. g paytm


3) Speculation : End use of money being used for stock market speculation or anything illegal. e. g notices to banks to curtail loans / track end use, p2p lending, rent payment
4) Exuberance in Lending leading to default possibility that may weaken the system - e. g Actions on BNPL, Lending limits etc..

So any loophole that may impact any of these will get checked on

So CCs are also trying to track accordingly.. so any loophole where end use of money is doubtful will start getting scrutinised..

Latest eg of (3)

RBI steps up scrutiny of retail lending, targets top-up home loans

RBI tightens supervision on retail lending, focusing on mortgage top-ups, algo-based credit models, and co-lending. It aims to manage risks in the financial system amid rapid credit expansion and global economic uncertainty. The RBI typically uses moral suasion - speeches, calls to bank...

m.economictimes.com

 

[Swastik]

Why curtail Rent Payments though ,as long as its legitimate (Rent agreement check) ,should be fine

 

[Zacobite]

Why curtail Rent Payments though ,as long as its legitimate (Rent agreement check) ,should be fine

bcoz many platforms like nobroker, cred etc don't check anything.. they are allowing p2p payment and ppl are paying each other credit card to cash.. only redgiraffe chks agreement nowadays.. rent payment will also get stopped soon is my guess.. points stopped already, chgs added already

 

[Swastik]

Also ,as for "4)" ,

- There are many genuine people who don't have access to credit easily can use BNPL for large purchases ,like appliances and what not

- It can lead to banks cutting down credit limit, like what Federal did with many Scapia holders ,

 

[Zacobite]

Also ,as for "4)" ,

- There are many genuine people who don't have access to credit easily can use BNPL for large purchases ,like appliances and what not

- It can lead to banks cutting down credit limit, like what Federal did with many Scapia holders ,

yes... it has already started.. many bnpl stopped... . bnpl defaults are increasing already

 

[Abhishek012]

Why curtail Rent Payments though ,as long as its legitimate (Rent agreement check) ,should be fine

Why can't you guys understand this, Rent payment falls in the same category as withdrawing cash from a credit card through ATM.

Doesn't matter your rent payment transaction is legal or illegal.

If you don't pay off your credit card balance in full each month, you could incur interest charges on the rent payment amount. This can increase the overall cost of your rent over time, especially if you carry a balance on your credit card.

Using a significant portion of your available credit to pay rent could increase your credit utilization ratio, which is the amount of credit you're using compared to your total available credit. High credit utilization can negatively impact your credit score.

If you're relying on a credit card to pay rent and you don't have enough funds in your bank account to cover the payment, you may end up accumulating credit card debt. This can lead to financial stress and difficulties in managing your finances.

 

[Zacobite]

Why can't you guys understand this, Rent payment falls in the same category as withdrawing cash from a credit card through ATM.

Doesn't matter your rent payment transaction is legal or illegal.

If you don't pay off your credit card balance in full each month, you could incur interest charges on the rent payment amount. This can increase the overall cost of your rent over time, especially if you carry a balance on your credit card.

Using a significant portion of your available credit to pay rent could increase your credit utilization ratio, which is the amount of credit you're using compared to your total available credit. High credit utilization can negatively impact your credit score.

If you're relying on a credit card to pay rent and you don't have enough funds in your bank account to cover the payment, you may end up accumulating credit card debt. This can lead to financial stress and difficulties in managing your finances.

It was great while the party lasted.. i benefited immensely for 3 yrs using dcb+red giraffe to get points, meet milestones as well as annual milestone.. obviously paying off in full every month.. but sadly now things are diff.. true to what you said.. if not paid in full.. then its a debt trap...

 

[imdjay]

Bus andha political donation chalu rhega.

 

[sidpsidp is verified member.]

Bus andha political donation chalu rhega.

"To let you know, having any political discussions on an Indian PUBLIC forum, has its consequences, maybe not right away but later on.
Hence, I would advise everyone not to get involved in political discussions on a public forum. This is how things are in our India, whether we agree or not."

🤣🤣🤣

 

[sidpsidp is verified member.]

Personal Views basis available information RBI has 4 Priorities that it has picked up and is driving aggressively that we are now seeing assertive actions on :

Valid points. These are welcome changes. What's weird is the crackdown on spends on business cc.

Considering it is cheaper substitute for working cap for those who knows how to manage debt. In many sectors 30days is enough time to finish your inventory you had bought on credit from supplier.

Debt trap is a low hanging fruit/excuse. We can argue the same about how govt is promoting mf & public's tendency to follow the herd ( buying high and selling low).
Same with promoting entrepreneurship & how most businesses fail.

 

[Swastik]

Why can't you guys understand this, Rent payment falls in the same category as withdrawing cash from a credit card through ATM.

Doesn't matter your rent payment transaction is legal or illegal.

If you don't pay off your credit card balance in full each month, you could incur interest charges on the rent payment amount. This can increase the overall cost of your rent over time, especially if you carry a balance on your credit card.

Using a significant portion of your available credit to pay rent could increase your credit utilization ratio, which is the amount of credit you're using compared to your total available credit. High credit utilization can negatively impact your credit score.

If you're relying on a credit card to pay rent and you don't have enough funds in your bank account to cover the payment, you may end up accumulating credit card debt. This can lead to financial stress and difficulties in managing your finances.

There are "Card to Cash for 2%" places still alive and thriving everywhear ,while genuine rent Payments are being targeted ,

As far as debt trap and credit utilization is comcerned ,it depends on the personal finance management of the individual concerned ,can be messed up even without Rent Payment option

Most of us here used the Rent Payment method in a healthy manner for Miles and Points ,and have hugely benefited from it ,I'm just sad to see it go

 

[Swastik]

It was great while the party lasted.. i benefited immensely for 3 yrs using dcb+red giraffe to get points, meet milestones as well as annual milestone.. obviously paying off in full every month.. but sadly now things are diff.. true to what you said.. if not paid in full.. then its a debt trap...

I've done rent payments last year on my Amex Plat Travel to finish 4L spend and collect enough points + Taj voucher to get free 1 night at Taj Deccan + 2 nights at ITC Kakatiya(Marriot Transfer) with still points to spare for more marriot stays ,not sure how I'll manage to finish 4L this year

 

[Swastik]

"To let you know, having any political discussions on an Indian PUBLIC forum, has its consequences, maybe not right away but later on.
Hence, I would advise everyone not to get involved in political discussions on a public forum. This is how things are in our India, whether we agree or not."

🤣🤣🤣

True ,let's refrain from any political discussion or things might get ugly very quickly 😅

 

[imdjay]

"To let you know, having any political discussions on an Indian PUBLIC forum, has its consequences, maybe not right away but later on.
Hence, I would advise everyone not to get involved in political discussions on a public forum. This is how things are in our India, whether we agree or not."

🤣🤣🤣

Aree.. fir misunderstanding. I meant. Demeaning one political person or party. General sense me chalta hai. As long as it's for everyone. 🤣

 

[Zacobite]

Whenever there is a mass adoption of any good thing, the regulator pitches in and kills it. Whether it be credit cards, mutual funds, stocks, crypto, Paytm, or whatever. Just in the name of regulation, these idiots Sebi, RBI, irda, and other regulators spoil our lives. Very sad. They don't like people making money and more people becoming rich and better. The old minded socialist regulator wants everything under control.

They are trying to protect mass negative impact to many ppl.. small caps are the latest example... Valuation way above basic financials.. all finfluencers driving hysteria on quick money... Froth in the market.. would have destroyed millions of households in the near term if not controlled.. I would agree with the emotions we are all feeling but I still think they are doing a decent job.. something that many Western countries are also struggling with.. Just my opinion..Read for a sample of the risks in Small Cap Funds of large MFs.. Imagine the situation in a major downturn

https://www.reuters.com/business/finance/indian-fund-houses-disclose-stress-test-results-small-mid-cap-portfolios-2024-03-15/

 

[sidpsidp is verified member.]

Whenever there is a mass adoption of any good thing, the regulator pitches in and kills it. Whether it be credit cards, mutual funds, stocks, crypto, Paytm, or whatever. Just in the name of regulation, these idiots Sebi, RBI, irda, and other regulators spoil our lives. Very sad. They don't like people making money and more people becoming rich and better. The old minded socialist regulator wants everything under control.

Totally disagree with your point. What happened to paytm/crypto should have to happened long time back. (Except for double taxation in crypto)
Actually people aren't making money. That'swhy regulators step in. In these cases either people get scammed or some entity make money at their expense.
What happened to paytm , should happen to many psb also, but regulators knowingly left them aside cuz that will create havoc in Indian financial system. Their time will also come but behind closed doors .

How did they kill mf/stock? Are you talking about crackdown on so called influencers. Then that also is the right move. People with no qualifications talking about things they have hardly any idea on. Many advice of these influencer are downright illegal.

Wherever there is no productive output but only nominal/quantitative change in raw figures, it will lead to inflation/bubble. It's exactly regulators job not to allow that to happen. That doesn't make them socialistic. Of course sometime they overreach their boundary, but that's because it is run by people and people want to feel powerful.

Remember they have kept yes/axis /icici/sbi alive. If it were upto politicians/bureaucrats total banking industry would have collapsed. Rera/ibbi have made great impact after their intro. Rbi is doing much better job compared to it's foreign counterparts. Though I am not impressed with irdai. But that might because of govt's priority to make insurance universally accessible. In next 5-10 years I expect that to change.