In the increasingly digital world, while banking has become easier, the risks for customers have also increased. From money disappearing from accounts to loan recovery agents harassing customers day and night, the average person often faces these problems. But now, the Reserve Bank of India (RBI) has geared up to protect the interests of its customers. RBI Governor Sanjay Malhotra, while presenting the monetary policy, has put forward three major proposals that could bring about significant changes in the banking sector. You will directly benefit from these changes.

Banks will compensate in case of fraud:
Most importantly, if you experience a minor online fraud, you will no longer have to bear the loss. The RBI is developing a new framework under which customers will be compensated up to a maximum of Rs. 25,000 for ‘small value fraudulent transactions’. This means that if a small amount of money is withdrawn from your account without authorization, there will be a defined system for compensation.

Additionally, it is often observed that banks or financial institutions mislead customers by providing incomplete information and pushing them to buy unsuitable loan, insurance, or investment products. This is called ‘mis-selling’ in banking terminology. The RBI is now introducing strict draft guidelines to curb this practice. Now, no bank employee will be able to manipulate you into buying a product against your will.

The bullying by recovery agents will end:
The behavior of recovery agents when loan installments are defaulted has often been a subject of discussion and concern. There have been numerous complaints of customers being intimidated, threatened, or mentally harassed. The RBI has taken this issue seriously. According to the new rules, putting unethical pressure on customers for loan recovery will be completely unacceptable.

The central bank is now reviewing all existing instructions regarding the appointment of recovery agents and their working methods. The aim is to implement uniform and strict rules so that the dignity of any defaulter is not compromised. This step will increase the responsibility of banks and provide customers with a fear-free environment. 

The doors of opportunity have opened for small businesses and borrowers.
Beyond just security, the RBI has also focused on the progress of the common man and small businesses. The limit for collateral-free loans for Micro, Small and Medium Enterprises (MSMEs) has been doubled. Previously, this limit was Rs. 10 lakh, and it is now proposed to be increased to Rs. 20 lakh. This will enable small businesses to easily access capital to expand their operations.

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