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Why RBI Should Reduce Rates When Its Not Passed to Indian Citizens - Bank Trying to Mint Money to cover their bad debts

RBI came under lots of criticism that they are not reducing the CRR and SLR in order to reignite the growth story in India. RBI kept their focus on Inflation to fend off unwarranted attack from some quarter. The past two rates cuts offered good opportunity for banks to pass on the same to their customer but they passed fraction of the same. It helped bank to make more money to cover their ongoing bad debt. It's nothing but an act of covering their bad decision while offering loans recklessly.

During the conference call RBIgovernor categorically pointed finger towards banks that the past rate cuts are not passed and not reflecting in ongoing economy.

It raises a simple query that why RBI should move forward and reduce the rates when banks are not willing to pass it on. At the same time, government should take strict action against such bank with heavy penalty in order to offer some relief to end user who is suffering from high EMI.  In case reader agrees with my point of view then please do share the article to your known.
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About Devendra Prasad

20 years plus industry veteran of domestic and international ICT domain with the expertise in Business, Technology, Strategy and Analysis. Specializes in forecasting impact analysis, trends and recommendations for Investments, Technology and Regulations.
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