It is the “savings” culture of most Indians that strengthened the backbone of the Indian economy and helped India to handle global recession and a slowdown. The State Bank of India’s decision to cut interest for SB accounts discourages people from saving for a rainy day and results in banks losing deposits, which are its raw material. The concept of banking means accepting deposits for the purpose of lending. Losing deposits is akin to creating more problems at this juncture for government banks, which are already struggling with stressed assets. Why is the BJP, which takes such fast and hasty decisions affecting the common man, hesitant when it comes to acting against corporate and big ticket loan defaulters?
Kshirasagara Balaji Rao,
Hyderabad
