Year Round-Up: 5 Key Financial Takeaways Of 2017

By Adhil Shetty | December 20, 2017

While borrowers cheered the low-interest rate period in 2017, debt investors had some anxious moments with interest rates on traditional instruments like Fixed Deposits going down.

Year Round-Up: 5 Key Financial Takeaways Of 2017

The year 2017 is about to end. The first few months of this year saw the common man grappling with changes demonetisation brought in. Since it was introduced in the fag end of 2016, the economy was still adjusting to the sudden transition. Cashless, paperless, low-interest rates, GST, RERA, Benaami Transaction Act were a few crucial financial moves/reforms that set the tone for the year 2017.

While borrowers cheered the low-interest rate period in this year, debt investors had some anxious moments with interest rates on traditional instruments like Fixed Deposits going down. All this and much more drew the contours of the year 2017.

Let’s check out 5 big financial takeaways of 2017.

Rise In Internet Penetration

Internet penetration increased significantly in 2017 owing to fall in connectivity charges and improvement in speed. Higher penetration resulted in an increase in awareness amongst common man about useful financial products and popularised the use of apps for utility services.

The government took the initiative to launch its integrated digital app ‘UMANG’. This app will provide a large number of government services to customers. Banks and financial institutions too came up with their own wallet services. Several wallet companies launched payment banks to increase the service span for its clients. ‘BHIM’, a Unified Payments Interface (UPI) based app, was also launched this year. BHIM allows users to transfer money between accounts by smartphone.

Paperless Revolution

The paperless revolution made its mark in 2017 with an increase in customers accessing services online like Mutual Funds, Loans, investments, Insurance, Credit Cards, etc. Paperless gave customers the ease to apply online and made the documentation hassle-free. Customers not only adapted to the new setup but used online facilities widely to compare, evaluate and fetch themselves a good deal.

This saved time and money and provided them better end-to-end services. Paperless financial products are offering a win-win proposition for the companies and the customers with more transparency, quick turnaround and remarkable improvement in the service quality.

Mutual Funds On A Roll

Mutual Fund schemes remained on an upswing in the post-demonetisation era. With a crumbling black money market, people shifted their investment focus from property and gold to Mutual Fund schemes.

With greater flexibility, higher return prospect and transparency in investment, investors have turned their focus on Mutual Fund investment. According to media reports, the total inflow of money in Mutual Funds in 2017 has witnessed close to Rs. 1.69 crore, which is the highest until now.

Big Policy Changes And Financial Reform

Some big policy announcements of 2017 like Real Estate Regulation and Development Act (RERA)  left a huge impact on the Indian financial market. Adopted by several states, RERA reinstated buyers’ trust in the real estate market.

During the year, Goods and Services Tax (GST) was implemented as indirect tax reform. It is still undergoing many changes to make it taxpayer friendly. The exact impact of GST will be clear only in the long-term.

The government made it mandatory this year to link Aadhaar to several financial instruments. It is compulsory to link Aadhaar to the mobile number, bank account, PAN card etc. And if you fail to do so within stipulated deadline, then you’ll not be able to use such services.

Home Buying Made Easier For First Timers

Home sales remained sluggish throughout the year, however, the government relaxed norms for Pradhan Mantri Awas Yojana (PMAY) scheme by increasing the eligible area under the scheme as well as shifting the deadline of the scheme to March 2019. For PMAY benefits, the income slab is now up to Rs. 18 lakh. The subsidy benefit is in the range of 3% to 4% of the eligible loan amount for tenure up to 20 years.

This scheme is expected to draw a positive response from first-time home buyers. It will help many people to uplift their eligibility criteria and avail a Home Loan to buy their first home. Banks reduced Home Loan rates significantly in 2017 and the prevailing loan rate is around 8.3% p.a.

BankBazaar.com is a leading online marketplace in India that helps consumers compare and apply for Credit Card, Personal Loan, Home Loan, Car Loan, and insurance.

All information including news articles and blogs published on this website are strictly for general information purpose only. BankBazaar does not provide any warranty about the authenticity and accuracy of such information. BankBazaar will not be held responsible for any loss and/or damage that arises or is incurred by use of such information. Rates and offers as may be applicable at the time of applying for a product may vary from that mentioned above. Please visit www.bankbazaar.com for the latest rates/offers.
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About Adhil Shetty

Adhil Shetty is the Founder and serves as the Chief Executive Officer of BankBazaar.com. Adhil has a Master’s degree in International Relations with a specialization in International Finance and Business from Columbia University in the City of New York, and a Bachelor’s degree in Engineering from the College of Engineering Guindy, Anna University. Adhil is an expert in Personal Finance (Car loan/Home loan and personal loan) and he majorly consults on investment and spends rationalization for the Indian loan borrowers. His guidance is number based with real time interest rate calculations and hence useful for consumer’s real time query.

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