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This is with reference to "Inclusion is more than an account," (Business Line, December 6).

Small savings schemes of the government have declined in collections due to fall in their interest rates.

Still gross savings as a proportion of Gross Domestic Product has been high in recent years. These two features show that the interest rate decides the allocation of savings among different channels and not its absolute level.

The latter is a function of income. Those who talk about any fall in interest rates affecting savings should note this fact.

A. Seshan

Hanoi

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