It refers to Reserve Bank of India empowering banks by giving them liberty to impose penalty in addition to reduced interest-rate on pre-matured closure of Fixed Deposits. RBI acts more as watchdog for interests of money-minting banks rather than bank-customers. Was a reduced interest rate of one-percent not in itself a penalty for pre-matured closure of Fixed Deposits?
RBI should restore to earlier policy of have similar interest-rates, other bank-charges and even penalties for different types of bank deposits, loans and services. Presently banks (especially private ones) lure fresh loan-takers through low interests, and later go on increasing these rates. Even RBI which in its RTI response has admitted that it is against foreclosure charge on pre-matured payment of bank-loans, has not yet directed banks to abolish the faulty practice.
Union government saluted money-minting tactics of ICICI Bank notorious for various types of banking-malpractices by honouring its CEO Chanda Kochar with Padma Bhushan. While East India Company made India slave for a century, faulty government-policies under a ?free economy? regime is creating numerous East India Companies in form of multinational banks.