R.D. Bhardwaj “Noorpuri”
Just around 30 months ago, interest rates on one year fixed deposit could fetch you an interest around 10% for one year and for the last one year, this rate has now nose-dived to just 6.50% and this pinches the common man really hard, as inflation is hovering above 16%. On the top of it, money lying in your SB accounts gives you a paltry return of 3.50%. it is also pertinent to note that Banks’ major income comes not from big loans extended by it to the business houses, but from the crores of small account holders and depositors, spread across the length and breadth of the country. On the contrary, big business people are earning huge profits from the loans taken from the banks at cheap rates (from out of the fund made available to the banks by its saving bank account holders and fixed depositors), which means that the banks and big business people are flourishing at the cost of crores of small account holders, spread across the country. These small account holders are really playing a pivotal role in nation building, but they are the unsung heroes. In view of the above, and in the interest of imparting some long overdue justice to the poor people, banks should enhance interest on saving accounts to around 5% and on FDs of one year and above to around 10% or so; so that crores of the poor people could also earn some good interest income. Public sector banks should take lead in this noble cause and it also becomes incumbent upon the central regulatory authority (Reserve Bank of India) to ensure that these rates are fixed with some minimum bench mark in relation to the prevailing inflation, from time to time.
