Mumbai, Feb. 9:
Finance Minister P. Chidambaram has advised banks to try and rationalise interest rates on loans offered to customers.
He underscored the point that lower interest rates would act as a spur to economic growth and alter customer sentiment. While, to a large extent, lower interest rates depend on policy rates, banks can attempt to improve their operating efficiency, reduce costs and pass on the benefit to borrowers through lower interest rates.
ramkumar.k@thehindu.co.in
Comments:
If the FM wants to collect lower interest rates from borrowers what
about the payment of interest to depositors ? So he wants to reduce
interest on Term Deposits. This is an anti-common man policy.The
inflation rate (retail rate) is above 10%. FM does not think or talk
about reducing inflation which hurts more the commoners, but he wants to
benefit the India Inc.
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