The lenders in India have expressed their dissatisfied over the proposal of the Reserve Bank of India about the de-regulation of the saving account deposit rates.
The Chief Executive Officer of the Indian Banks’ Association, Mr. K.Ramakrishnan said “Given the conditions in which we are today, the bankers felt it will not be appropriate for actually not going in for deregulation at this point of time.”
Recently the reserve Bank of India had imposed several amendments about the calculation of the interest rates on the saving accounts on the banks and then it mandated the lender to increase the interest rate applicable on the saving account deposits to 4%.
A banker with private sector lender said “Established banks will be against it and new banks be in favour because if I have rate as a tool to compete in the market, it makes it that bit easier.”
“Right now, the liquidity is really tight and in this kind of an environment you can’t deregulate a product which can potentially throw nasty surprises to bankers on how to manage their deposit base,” said an analyst with brokerage firm.
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