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  • Category: Miscellaneous

    RBI has again reduced the Repo rate

    Reserve Bank of India (RBI) has again reduced the Repo rate yesterday. The RBI Governor, Mr. Urjit Patel has announced a cut of Repo rate by 25 basis points. After the reduction of Repo rate, the banks will have to cut down the interest rate. This will help in controlling inflation. The reduction in Repo rate will also bring cheers to the the home loan takers, because they will get home loan at a much reduced rate.

    On the other hand, the life of the retired people who depend on the interest of their retirement savings will find the going more tough. In fact, during the last five years, the RBI has been reducing interest rate bringing cheers to the loan-takers, but causing difficulty for the retired people. Now time has come to give a serious thinking about the welfare of senior citizens in the interest cut regime.
  • #604934
    I support the author notion that those who have retired and got their retirement benefit through some formidable amount are tend to save with their own bank account whether as fixed or savings. But the cut in interest rate will have impact on the retired senior citizens who will get lesser interest amount with this action. Government and the banks should not touch the senior citizens at all. What ever they can , they must be allowed to enjoy and after all they are going to live for fewer years. Moreover every bank thrives on the savings of retired employees who wont withdraw the amount just like that.
    K Mohan
    'Idhuvum Kadandhu Pogum "
    Even this challenging situation would ease

  • #604936
    Definitely these decisions by RBI are going to affect the senior citizens as most of them invest in Bank FDs.

    RBI has to take such decisions time to time considering all the economic factors. It has happened in the past also. If I remember correctly during 1990- 95 the bank interest rates where very high almost touching in the range 13%-14%. After that they stabilized for a few years at that level but slowly started coming down as new governments at that time initiated many economic steps. The interest rates started declining and came down drastically to 5-6 %.

    Thereafter the rates started increasing again and rose to a peak of 9-10% and remained there for quite some time. After the formation of BJP government now the rates have come down to almost 6% and likely to move further down.

    These are the economic cycles in the growth of a country. Once a country is developed these fluctuations will be smoothened out and rates will be stabilized.

    Knowledge is power.

  • #604972
    It is true. Definitely the decision of RBI will bring lot of unhappiness to senior citizens. The RBI is nowadays is showing more interest towards lown tankers than money investors. If we keep money in FD in a bank the value is comin down. The increase in price index is more than the percentage of interest we are getting. Really the old people are suffering.
    Recently I have seen government requesting senior citizens not to avail the concession rates in railway tickets also.Again RBi is reducing the interest rates. With all this the living standards of these old people is coming down. The people who are retiring from private jobs don't have any pension and only the PF amount they will get. They have to manage with the interest they are getting on PF amount. So I feel time has come that government should consider these aspects also and should advise RBI not ot reduce FD rates furthe.

    drrao
    always confident

  • #604975
    The trend being created(copied from elsewhere) is to 'spend and splash by borrowing' and 'not saving'. Indirectly everyone is kept under perennial debt track. It is to encourage that the interest rates are reduced .

    Personally, I feel than an average interest of 12% p.a and a long term deposit interest rate of 10% p.a is a reasonable one. I feel that almost all business and investment generate profit not less than 20 per cent. Those who invest in banks also should get returns near to that.The banks/government can incentivize and even subsidise loan rate to deserving genuine poor people borrowing for genuine priorities and for productive purposes. Government can create a pool dedicated for that purpose.
    The present situation is an encourage loan defaulters and punish those who repay honestly.
    The govt/RBI action to reduce interest rates -( which will only ultimately help and benefit multinational corporates and large domestic corporates)- could happen only because of sacrifices of many citizen saving small amounts and keeping them in banks, to use for their emergencies.

    The idea will change and interest rates may be hiked if the large corporates and business houses feel that will help them. The government is throwing out all the wisdom of ages and exposing the country and its average citizen to avoidable risks and trouble.

  • #604978
    The social security system for senior citizens in India is not comparable to western countries. So, the Government and RBI can't take decision detrimental to the interest of increasing number of senior citizens of the country.
    Caution: Explosive. Handle with care.

  • #604991
    Previously the senior citizens used to purchase Indira Vikas Patras or Kisaan Vikas Patras issued by the big post offices and that can be deemed for the double once five years was competed. I fear such scheme is there or not ?
    K Mohan
    'Idhuvum Kadandhu Pogum "
    Even this challenging situation would ease

  • #604995
    According to me it has benefited but as you all mention that senior citizens will have tough time that might also be true.

  • #605025
    Please have a look into this related thread before posting a response here.
    "To be proud of knowledge is to be blind with light" - Benjamin Franklin

  • #605027
    Are these two threads exactly same? Online Members may please express their opinion. The second thread is the result of my day-long research and study, which has been abruptly locked with reduced point.
    Caution: Explosive. Handle with care.

  • #605028
    Partha, they are not same but are similar and basically covers the same subject. Your thread was locked with a link to your previous thread so that members can arrive at a wholesome conclusion.

    I don't think there is a need to make a fuss about reduction in points. Creating different threads on separate aspects relating to a similar point need not, I think, be encouraged.

    Members are requested to stick to the thread topic instead of getting diverted.

    "To be proud of knowledge is to be blind with light" - Benjamin Franklin

  • #605029
    I beg to differ, Mr. Ganesh. I have a feeling that you didn't bother to read the entire thread which has been locked.
    Caution: Explosive. Handle with care.

  • #605030
    No. Other than adding a few details, can you assure that both the threads are different in content? I don't mind unlocking the other thread if you can give me the word.
    "To be proud of knowledge is to be blind with light" - Benjamin Franklin

  • #605031
    This thread raised a question which is very important. The locked thread is a sincere attempt to find the solution.
    Caution: Explosive. Handle with care.


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