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  • Category: Miscellaneous

    Time to give depositors some respite

    We have had too many problems with the Modi Government. The depositors, mostly retired employees, who depend on the banks for their living. Since he assumed power for the second term, the great PM has never allowed the banks to raise rates, though the inflation was at a record high.

    His ineffective Finance Minister was ( and still is) worse than any one other Finance Minister of India. Today, when the chips are down and the Covid-19 menace is back, it is prudent and just for the depositors to be given something extra. Either the Government of India should come out with a good scheme that offers 8.5 percent interest, or allow the banks to raise their deposit rates to 8.5 percent.

    The time to act is now.
  • #749208
    For every reason and season the author try to blame PM Modi or his government for being incapable. Tomorrow when the TN is cloudy and no sun is reported, even that could be the cause of handiwork by the PM. The author should know that RBI has been authorized to increase or decrease the REPO rate to which the banks have to follow the rules and abide. Just because the banks are able to give loans to the customers at very low rate, the economy could able to post 9.2 percent growth and the author has not mentioned this and got more worried about the senior citizens. The govt knows how to balance the economy and Modi govt has mastered over it and even the International agencies were gone awestruck over the recovery because India kept loan rates at very low interest rate and the economy is back to rails.
    K Mohan @ Moga
    'Idhuvum Kadandhu Pogum "
    Even this challenging situation would ease

  • #749213
    Bank interest rates are coming down day by day not today but from quite a long time. I remember in 1992 the Bank FD rates were around 14 to 15%. But the opening of the economy and to contain the inflation and to develop the nation in a synergetic way the bank rates were reduced slowly and slowly in steps and today they are hovering at almost from 5 to 6%.
    So simply blaming the PM will not be a correct thing as there are so many financial and economic reasons for deciding that.
    We have to see that due to decreasing bank rates the loans are also available at lower interest rates which is required for the business and industries alike. We cannot think only for the benefit of the retired people.
    Those were the reasons why Govt abolished the pension scheme for the retired except the defence persons.
    Govt has already given some special tax benefits to the elderly and that should compensate the interest loss to some extent.

    Knowledge is power.

  • #749217
    Bank interest rates are slowly coming downward as compared to the year 1992, when the same was around 14% per annum with a special over 0.5 %per year for the elderly people but that offerings were slowly decreased to the level of 5 to 6% per year. Senior citizens are entitled to a little more at the rate of 0.5 % for their fixed deposits apart from the prevailing prescribed rates. In no way, in the present circumstances, it would exceed 6.0% at the present moment. The unfortunate part is that the don't have the other income apart from the fixed deposits. There are definitely a number of welfare schemes being doled out to the weaker sections and so they must be covered in such weaker sections so that they get protected from the increasing trends of inflation with their rates of bank deposits raised to some respectable amount. Hope the government would look after their welfare with the hike of their interest rates after considering their hardships.

  • #749226
    I feel the author is of the opinion that all problems will be solved if Modi is removed from the PM post and BJP is sent out of power.
    As mentioned by the other members, for everything blaming the present government and the PM is not good and may not be accepted by all.
    Yes. Banks are giving loans to various people and the interest rates there are reduced. Banking is also a business and they want profits. When they are getting loans at a lesser rate of interest, how do they give a higher rate of interest? RBI is the authority to decide on this and they will work based on certain guidelines.
    The decrease in interest rates was not happening for the first time now. It started in Congress government only and the same is getting continued now.

    drrao
    always confident

  • #749230
    The Reserve Bank of India is fully owned and governed by the Government of India. It is controlled by a Board of Directors appointed by the Government of India. The Central Board consists of Governor, 4 Deputy Governors, 2 Finance Ministry representatives, and 4 directors to represent local boards headquartered at Mumbai, Kolkata, Chennai, and New Delhi. It is obvious that the Reserve Bank of India is fully controlled by the Government of India.
    The banks may be giving cheaper loans to the public for housing purposes. The senior citizens will not be taking loans and some probably may be repaying the balance amount of loans taken by them. In our country, the banks are the only safe places where senior citizens can deposit their money and expect to live on the interest earned. The Government can certainly help them by increasing the interest rates for senior citizens. It is not a big issue and will help the senior citizens to live in peace. Which Government previously started decreasing the interest rates is of no interest and the present counts. The wrongs that were done by previous governments are not a justification for the present government to do the same.

    " Be Good and Do Good "

  • #749238
    In economic policy, BJP is far more towards capitalism and business than Congress.

    Their economic policy is lenient towards business and big business. For vote ensuring they give free doles to the vocally forceful sections which claim to be poor and deprived. That is the reality.

    BJP mostly follows the current western and European economic ideology of growth by spending. So they encourage spending by borrowing and credit cards and similar instruments. Above all these, the large multi national corporates (especially the vehicle manufacturers and FMCG manufacturers) put pressure on the government to reduce loan interests so that people make more purchases on credit and thereby benefiting increase in their business and profit.

    When loan interest become les the banks will reduce the deposit interest also.

    The western neo ideology is o discourage deposits which they say is idle money, but want money to be \invested' in business via 'market instruments'. Big business is run not on their own money, but by the money put in by poor small investors who saved the money by sacrificing their needs. In order to get money at cheap rates for their own selfish interests business houses and multinationals influence governments to bring policies in their favour only.

    Let it be clear that the current new generation thinking is in spending tomorrow's money today and live ever in credit. Saving and deposit are taken to be old fashioned and orthodox. But it is difficult for the previous generations to digest this.

  • #749271
    I want to add something here which may not be liked by many elders and the retired people but that is the fact and going to happen soon in our country. If our country develops with the same pace as it is doing today and our governance improves and corruption is contained and evil forces and criminal elements are put behind the bars then our economy is going to flourish tremendously as there are new opportunities arising for India in the world business and international trade. If that really happens then the bank interest rates are going to decrease further and might stabilise at 2-3% level. But there is nothing to worry as other things would also fall in groove accordingly. When it is a question of country's progress than selfish interests have no meaning.
    Knowledge is power.


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