Let banks now increase the deposit ratesWhen real inflation is above 7% and even RBI has increased the repo rates, it is in the fitness of things that one should be very careful now. The banks need to wake up and increase the deposit rates. Otherwise, the Mutual Funds will gather even more money and the flood that started some two years ago will go on unabated. SIP, for example, is far superior to bank deposits, and everyone is realizing that it is so.
There needs to be pragmatic thinking among bank Managements. They cannot sit idle now. The deposit rates should at least touch 7.5%, if the banks were to do justice to the depositors, who have already suffered so much.