The interest rates payable to depositors should atleast be 2% over the inflation rate. Here we the depositors are squeezed of the return on our hard earned money in which we are dependendant for our living as a retired people. Govt. increased the DA to its employees by 8% apart from huge wage increase under pay commission. Why don't the government pay atleast a decent 10 to 12% interest on deposits in long term like PPF/Post Office Monthly on which retired people are solely dependant. Govt. can put a ceiling on investment say Rs.25 lakhs. Only this way retired people who have to also foot large medical expenses can make a reasonable living . Retired people must be allowed to live with dignity than depend on others.
During the tenure of congress govt if inflation takes place they are saying imported goods price rise any people think that congress r right but in actual it is not true all money going into their pocket n common man has to suffer.
Why doesn`t the RBI babus see that if anything including money becomes costlier, prices of all things go up? If RBI hikes, for example, all interest rates by 100%, every thing will cost more. There will be lesser buyers/ consumption all right, but the prices and inflation will definitely go up. What every RBI governor and his team have always done is promote and protect the interests of the banks, who will earn more interest on the funds obtained by them at low cost. The most glaring self-serving step RBI routinely takes is to let the Banks apply to increased interest rates to past Home Loans, with the objective solely to enable banks to make unfair profits. All RBI Governors and even the Apex Court have conveniently ignored this exploitation by willingly getting impressed by banks` theories on cost of funds which are no longer available with the banks, are not loaned again and again etc.!!! High time this particular area of unfettered freedom of RBI is carefully looked into by every Indian citizen possessing elementary understanding.
Re: Interest rate hike - RBI
by newbloger on Mar 19, 2010 11:13 AM
Deear, you take any asset bubble, it has its roots to cheap borrowed money. Same is happening in India, specially in property sector. If money comes cheap, then prices go up as too much money chases too less goods, thsi is wrong. So interest rates must be high so that loose lending will not happen and banks and prices wont rise sharply.
Re: Re: Interest rate hike - RBI
by venu pillai on Mar 19, 2010 11:50 AM
s u r correct, likewise the marketing of loans by banks to be stopped. gv loan to genuine customer and preferably to genuine industries rather than to individuals. Interest rate should be increased. Then people will think twice before availing a loan. Now a days loan are not giving to genuine customer and giving loan to those who does not want to repay the same. This practice should be stopped. By raising interest and keeping track of credit card use inflation will come down. Give mass loan to Manufacturing industies after collecting necessary security and keep a watch of the actual use of the fund, so production will increase. Like wise if you stop loan marketing then purchasing power will decrease, automaticaly inflation will come down.
Re: Interest rate hike - RBI
by MANI on Mar 19, 2010 10:23 AM
You mau sound logical to lay persons but not pundits.Dont go for loans is the best solutions for common man to force RBI & banks to reverse their policies.As long as common man goes for loan to buy luxuries RBI will mandate the interest rates. Next best solution on the long run will be to reduce population drastically so that these babus will go down on their knees to beg people to take loans on cost basis, all utopian & unworkable ideas, so carry on as is Daniel.
Re: Re: Interest rate hike - RBI
by chandru on Mar 19, 2010 11:04 AM
The other way to tackle supply side inflation is to sell some dollars from forex reserve (trash) kitty and allow the rupee to appreciate. But we have to be very careful here not to start an avalanche of dollar crash.
Whenever Cong and like minded parties come to power, price rise does take place (and case of black marketing/hoarding etc fueled in the name of RATIONING FOR POOR, increase) and the media becomes silent over it. There is no say of the common consumer. The sence of increase in inflation rate cannot be understood by a common consumer. Hence media talks about inflation rate only. Why ? Had there been some other ruling party, media must have cried and made noises for every penny increase in prices. It appears media is totally under control of the present ruling junta.
Re: Re: PRICE RISE
by mahesh on Mar 19, 2010 12:48 PM
congress always make sure they preserve the interest of minority community no matter whatever happens to rest of all...and hence captures votes in election to come to power.
Re: PRICE RISE
by Valentine on Mar 19, 2010 10:17 AM
I think you belongs to Kerala CPI and CPM. Dont talk like communists who talks big big things and travelling by luxury cars and shopping one of costliest super markerts. So first learn the meaning of Rich and Poor and then give lecture to others.
Re: PRICE RISE
by Valentine on Mar 19, 2010 10:17 AM
I think you belongs to Kerala CPI and CPM. Dont talk like communists who talks big big things and travelling by luxury cars and shopping one of costliest super markerts. So first learn the meaning of Rich and Poor and then give lecture to others.
