Your guide to 2022: Loans won’t remain cheap but rate hike will soothe depositors

Your guide to 2022: Loans won’t remain cheap but rate hike will soothe depositors
Written by Publishing Team

The pandemic has accelerated many changes in the financial sector in 2021. Some like easy money and the hunt for individual borrowers may return to normal, and other behavioral changes are likely to gain momentum. Here’s what to expect in 2022
money to get Koestler: The SBI raised some of its benchmark prices. HDFC and Bajaj Finance have also improved deposit rates to secure as much money as possible while rates are poor. With the Reserve Bank of India promising to freeze most of the excess liquidity by January, short-term interest rates are also set to rise. It’s only a matter of time before deposit and loan rates go up too. This will be a relief for seniors who depend on FD rates
UPI Trade: UPI creates new records every month driving peer-to-peer payments. 2022 will be an inflection point for UPI users of merchant payments. RBI allowed an on-device wallet that would enable UPI transactions without relying on the network, which means a low failure rate. The government has also allocated 1,300 rupees to promote low-value UPI and RuPay transactions, which can make QR scanning the default payment mode in convenience stores.
Auto Lending: Until now, only some private lenders had the ability to analyze transaction data in bank accounts to ascertain the creditworthiness of the borrower. An account aggregation platform launched in 2021 allows customers to submit this data to any fintech, bank or NBFC with automated lending capability. There are also networks such as OCEN that allow automated lending against customer receivables, which can be verified by accessing GST servers.
Banks as platforms: Most of the large Indian banks have a customer base equal to the population of a medium-sized European country. With about 64% of Indian households having access to smartphones, banks have realized that to stay relevant, they need to offer a range of services – bill payments, e-commerce, investment and loans – on their apps. The big banks have already launched super apps. The platform war could intensify as other lenders fight to retain clients.
CRYPTO . EFFECTUncertainty about the role of cryptocurrencies remains. While the Reserve Bank of India has done its best to prevent any acceptance of cryptocurrencies, the fear of a global outage is likely to prevent the government from enacting legislation for a complete ban. This would leave the field open to more adventurous financial intermediaries to facilitate crypto services in the country.
Changes in health insurance: The pandemic has raised the cost of health care. Insurers say this will be passed on to policyholders. The Insurance Regulatory Authority is concerned about the rising healthcare costs and has asked the government for powers to regulate healthcare so that costs are rationalized. Thus, expect some changes to
Make health care affordable – There can be either a reduction in the GST or a limitation on some of the costs of treatment.


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