Rbi Alert: For the last few days, those taking loans are being cautioned by the RBI. These advice and awareness messages are being given to the people through advertisements, posters, videos, etc. In an RBI poster, you will see that people have been appealed to avoid taking loans without any reason. One poster says that take as much loan as you need. It is also written that people should use the loan amount for the purpose for which the loan has been taken.
It has been said in these messages that keep an eye on your dues and keep making payments on time. To alert the borrowers, the RBI has given a slogan to this campaign- “RBI says… financial discipline, worry-free life.”
If we look closely at the campaign being run by the RBI at present, then it is largely due to people being cautious in taking loans, without taking loans, using the loan amount correctly and repaying the loan EMI on time There is more emphasis on such things.
# 1. People are investing money in the stock market by taking loans!
Experts believe that there is a reason behind this campaign of RBI. Experts believe that it seems that people are using the loan amount to invest money in the stock market and this is a big risk. Senior economist Professor Arun Kumar says, “There has been a lot of jump in the financial markets. In such a situation, some people are investing in markets by borrowing. The RBI governor has said at least thrice in the last 4 months that financial markets are not showing the true picture of the economy. In such a situation, the risk is increasing. ” Prof. Arun says that there is a lot of risk in the market at this time. In such a situation, there are chances of loss of bodybuilders.
#2. Putting money in the market is very risky!
Vishal Dhawan, director, PlanAhead Wealth Financial Advisors, says, “The loan interest rates are at a very low level. In such a situation, people feel that the loan taken now is going to be very cheap. However, most of the loans are at floating rate and in such a time when the rates will increase, people will have to pay more money. They say that many people feel that they can now put it in the stock market by taking cheaper loans and there they can get more profit. However, the regulators are repeatedly warning people that it can be very risky to put money in the market made on record.
# 3. The danger of increasing NPA!
Dhawan says that many people stopped giving EMI by taking advantage of the Moratorium given at the time of COVID-19 pandemic and such people felt that their interest would be forgiven. Whereas it was not so. They say that due to all these reasons and concerns, RBI is trying to make customers more aware. Apart from this, small businesses are also going through difficult times and the risk of loan default is visible to RBI in this sector.
Prof. Kumar says that in the last one year, many industries have gone through difficult times. There is a risk of default, especially in small business MSMEs. Loans to these traders can be converted into NPAs. Even SEBI, banks, insurance regulator IRDA and RBI have all run such campaigns in the recent past. At the center of all this, the safety of customers is the main objective.
RBI is continuously making awareness
RBI has recently completed Financial Literacy Week 2021. This week was celebrated between 8-12 February. The Reserve Bank is still engaged in this campaign and is making people aware. The RBI theme this time has been “debt discipline and loans from formal institutions”. In another campaign, people have been warned that they should take loans only from formal institutions.
The RBI has stated that financial inclusion and education are two important elements of the Reserve Bank’s developmental role. RBI has prepared content in 13 languages to educate customers. According to RBI, “The move is aimed at creating awareness about financial products and services, good financial activities, digitization and protection of customers.”
Credit of tech has reduced in the recent past, RBI and other banks want it to increase. But, the big concern of RBI is that these loans should be taken for the right work and its quality should be good where there is no chance of debt sinking.
(Report: Money 9)