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.
nice
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