Will the deposit rates go up at all?The single greatest achievement of our BJP Government, at least as per their claims, is that inflation has come down. However, in the name of GST, every single item of daily use is going up through the roof. There is nothing that is coming down and the official rate of inflation is itself more than five percent. There are many experts who opine that the retail rate of inflation is the actual rate of inflation. If so, the actual rate of inflation will be very high.
When Dr Subba Rao was the RBI Governor, he in fact recommended that banks should give higher rate of interests on deposits when inflation shot up. But what we get under this BJP rule is a pittance of just 6.5 or 6.75 percent. The so-called scheme for pensioners also has just 8 percent interest.
For senior citizens, if the Government wants to do something, the rate of interest on deposits should be 9 percent. Otherwise, we will just not be able to make both ends meet.
The question is: will the Government do it?