Summary
Contents
Do you often wonderIs my money safe in banks? India is grappling with its worst banking crisis ever, and we are still trying to figure out what landed us here. This book analyses the role of the government and RBI in allowing the problem to reach the dimension it has assumed today. When will the never-ending NPA issue be resolved? Does it make sense to merge two PSBs when the culture and governance structures are alike? Should the RBI reserves be used in times of crisis? Should the tenure of a CEO be long or short? The book ponders and debates on some of these questions. Hits and Misses presents the two sides of the Indian banking story by giving an account of the reforms as well as quandaries in times of extraordinary economic and political challenges. The book answers many relevant questions by highlighting the highs and lows of the banking sector, which became subjects of debate in media and financial circles.
Don't Use the Small Savings Argument Please
Don't Use the Small Savings Argument Please
Bankers are known to always put forward the argument that they are not in a position to lower deposit rates even when RBI lowers the repo rate because if they were to do so, customers will withdraw their deposits and put them in the small savings accounts offered by post offices. Small savings interest rates have tended to be higher than bank deposit rates. This has also been supported by the policy statements of the MPC where there is reference to the same thought and often mentioned with a touch of sympathy. The government on its part is also in agreement with this argument and keeps asking for the same. just ...