The Hindu Business Line : Credit Policy

Once again the RBI Governor has not taken any aggressive line and maintained status quo on cash reserve ratio, though the Finance Minister was for more liquidity in the system.

He has not changed the savings bank (SB) interest rate as well.

While all deposit rates are freed there is no reason to keep this as an administered rate.

Banks recently raised deposit rates and this certainly calls for raising the SB rate that will help retail depositors and pensioners.

The RBI's decision to standardise service charges will eliminate `fine prints' and hidden costs.

Though it is the customer's right to demand charges details it is practised more in breach.

It is a customer centric initiative under fair practices code.

L. Rangarajan

Vadodara

This is with reference to "RBI intrigues to interest," (Business Line, April 19): The interest, repo, and reverse repo rates as also the CRR were not changed. At the same time, the cap on NRE rupee deposit has been raised 25 basis points and cap on interest rate on foreign currency export credit hiked by 25 basis points in line with global trend. And protective measures such as increasing the risk weight for real-estate exposure, have been taken. The doubt whether the prospect of a lower growth of non-food credit, a `calibrated deceleration' will not work against the desired goal of growth has been raised well in time.

A. Jacob Sahayam

Thiruvananthapuram

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