The SBI reduced it’s lending and borrowing rates yesterday, with expectedly much deeper cuts in its borrowing rates, on savings and fixed deposit accounts.
The SBI reduced it’s lending and borrowing rates yesterday, with expectedly much deeper cuts in its borrowing rates, on savings and fixed deposit accounts. Its interest rates on balances in savings bank accounts now are a measly 3%, the lowest rate in a couple of decades. With inflation rates being much above 3% that means a negative return on your bank balances and that your sums of money are truly not benefitting you. But that has been so, for most of the past decades, with interest rates always being lower than the inflation rates, giving you a negative income. This specter of a negative return on investments compels the ordinary householder to seek other avenues that give him a better return on his investments, often trapping him into Ponzi and corporate frauds, where they often end up losing the principal amount itself. In India, it is the hapless individual, which bears the maximum brunt of such economic hardship and discrimination. And paltry interest rates is not the only point of discrimination of the helpless Indian.
1. Low-interest rates, subsidise corporates and the government.
2. High petrol prices, subsidise the fiscal profligacy and misconduct of the government.
3. High tax rates.
4. Shareholders of fraudulent entities.
5. Regulator and Auditor negligence (PMC Bank).
6. Public funds lost in bank frauds.
7. System driven penalty denies natural justice.
8. No OTS like write-offs for individuals.
9. Corporate cartels like airlines.
10. Difficult and insensitive judiciary.
It is the individual whose consumption demand drives up GDP growth, it is he who gives savings and spurs investments, it is he who bears the heaviest tax rates, but it is he who gets a raw deal.
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