Streamline bank-interest

It refers to State bank of India cutting interest-rates on deposit by 0.25 percent. There was a time when all nationalised banks used to have same interest-rates for deposits.

But in ‘free’ economy, bank-customers are utterly confused finding even public-sector banks having different interest-rates for deposits. It hurts retired and senior citizens who switch over from one bank to other for want of higher interest as their only livelihood.

Interest-rates to be decided by reserve bank of India (RBI) should be common for all banks including in private and public sector banks. Rather interest on loans should also be uniform for all banks so that benefit of repo-rate cuts may be automatically available to old loan-takers as well. Banks can compete by giving better service and facilities.