Money invested by the general public in banks should not be allowed to erode because of inflation and insufficient cover by way of interest. For this reasonable wish to happen the interest rate should be split into two components, one, inflation rate which vary from time to time, and two a minimum of 6 per cent fixed interest irrespective of time . Inflation rate will act as cumulative interest, and the normal interest will be paid out in all accounts. Savings interest shd be pegged to inflation rate. Common man wanting to keep his money with banks sees a ploy in the reduction of rates of interest only to benefit the business community, and the commoner having to do with less and less purchasing power. Business houses are wasting profits in excessive wages to the top and middle level commissions to the promotors directors, partners, excessive advertisement expenditure, and various other perquisites, that takes away a major chunk of profits, and what is left is retained in the industry for so called liquidity. Liquidity can be maintained if wastes are avoided, and there will be also enough and to spare for a fair dividend to shareholders, for ploughing in, and payment of taxes. One must see that the hue and cry about the interest rate is stage managed, to camouflage the real problem of unchecked siphoning of profits in the guise of business expenditure by whatever name you may call. This apart from wagering , sponsoring events which have no real benefit society, like IPL, motor car races, all of which is diversion of funds that could otherwise be deployed productively. Investor confidence will then be restored, and never by IPOs opening at exhorbitantly inflated premiums over face value. This is all financial jugglery indulged in, by one and all including accountancy,management consultancy, legal consultancy , etc services, without demure, which seriously affects a nation's core values . In this there is international participation. At this so-called elite level only selfishness rules the roost. And all the good work of philanthropists - gates, premjis, birlas, ,tatas buffets, and many scores of humanists, cannot undo the plague of selfishness and self aggrandizement setting back the clock of all round progress. There will be disease and more disease of mind and body which are going to engulf all of us, and man's only preoccupation will be to prepare himself for a dangerous existence,with forebodings of death knocking at the door all the time.
PURUSHOTTAM KULKARNI - 9 years ago
Banks don't reduce interest rates but just make book entries. Their big loans are just fake to show large advances figures to the people like the Doctors of fraud who are shamelessly roaming all over the world betting in cricket matches. N. P. A. figures are understated & no serious attempt is made to recover. The lending official is transferred in 2-3 years giving way to another who does not monitor or follow up or recover & lets the old finance die as he is too busy giving new loans.
Bhavesh Shah - 9 years ago
Banks are reducing deposit rates well in advance before RBI cut rate. Even if RBI do not cut rate, banks stand by their own decision & do not change the rates. But when RBI actually cut the rates. banks never reducing the landing rates until RBI Gov. threaten them to do so. By reducing borrowing rates in advance & not reducing landing rates, banks are making huge profit & making fool public of Govt. of India & RBI. RBI should not only threaten to banks, but take actions against banks for making huge profit. They do not hesitate to increase the salaries of their employees but they hesitate to reduce the landing rates. This is nothing but absolutely criminal activity by all banks & RBI should not tolerate this practice.
JAYANTA CHOWDHURY - 9 years ago
On the other hand the central bank should given more importantency to recover the bad loan, disbursed for the big industrial sector , and should more cautious to issue big loan to the sector, already defaulted, than to minimise the repo rate so that commom people get some relief from it and also the industry who actually need loans.
Money invested by the general public in banks should not be allowed to erode because of inflation and insufficient cover by way of interest. For this reasonable wish to happen the interest rate should be split into two components, one, inflation rate which vary from time to time, and two a minimum of 6 per cent fixed interest irrespective of time . Inflation rate will act as cumulative interest, and the normal interest will be paid out in all accounts. Savings interest shd be pegged to inflation rate. Common man wanting to keep his money with banks sees a ploy in the reduction of rates of interest only to benefit the business community, and the commoner having to do with less and less purchasing power. Business houses are wasting profits in excessive wages to the top and middle level commissions to the promotors directors, partners, excessive advertisement expenditure, and various other perquisites, that takes away a major chunk of profits, and what is left is retained in the industry for so called liquidity. Liquidity can be maintained if wastes are avoided, and there will be also enough and to spare for a fair dividend to shareholders, for ploughing in, and payment of taxes. One must see that the hue and cry about the interest rate is stage managed, to camouflage the real problem of unchecked siphoning of profits in the guise of business expenditure by whatever name you may call. This apart from wagering , sponsoring events which have no real benefit society, like IPL, motor car races, all of which is diversion of funds that could otherwise be deployed productively. Investor confidence will then be restored, and never by IPOs opening at exhorbitantly inflated premiums over face value. This is all financial jugglery indulged in, by one and all including accountancy,management consultancy, legal consultancy , etc services, without demure, which seriously affects a nation's core values . In this there is international participation. At this so-called elite level only selfishness rules the roost. And all the good work of philanthropists - gates, premjis, birlas, ,tatas buffets, and many scores of humanists, cannot undo the plague of selfishness and self aggrandizement setting back the clock of all round progress. There will be disease and more disease of mind and body which are going to engulf all of us, and man's only preoccupation will be to prepare himself for a dangerous existence,with forebodings of death knocking at the door all the time.
Banks don't reduce interest rates but just make book entries. Their big loans are just fake to show large advances figures to the people like the Doctors of fraud who are shamelessly roaming all over the world betting in cricket matches. N. P. A. figures are understated & no serious attempt is made to recover. The lending official is transferred in 2-3 years giving way to another who does not monitor or follow up or recover & lets the old finance die as he is too busy giving new loans.
Banks are reducing deposit rates well in advance before RBI cut rate. Even if RBI do not cut rate, banks stand by their own decision & do not change the rates. But when RBI actually cut the rates. banks never reducing the landing rates until RBI Gov. threaten them to do so. By reducing borrowing rates in advance & not reducing landing rates, banks are making huge profit & making fool public of Govt. of India & RBI. RBI should not only threaten to banks, but take actions against banks for making huge profit. They do not hesitate to increase the salaries of their employees but they hesitate to reduce the landing rates. This is nothing but absolutely criminal activity by all banks & RBI should not tolerate this practice.
On the other hand the central bank should given more importantency to recover the bad loan, disbursed for the big industrial sector , and should more cautious to issue big loan to the sector, already defaulted, than to minimise the repo rate so that commom people get some relief from it and also the industry who actually need loans.