Whenever RBI deputy governor KC Chakrabarty gets a chance to blast banks for their inefficiencies, he goes full throttle. Sometimes he can be heard shouting at bankers even through closed doors, so there is no question of his being restrained at public functions. At an Assocham conference, the object of his ire was a new fixed deposit scheme offered by the State Bank of Hyderabad: In front of the finance minister you say your cost of borrowing is 8.5% and outside you are offering 9.5%, he yelled. Incidentally, the finance minister recently held a review meeting of state-run banks but attending bankers were strictly instructed against interacting with the media. Now we know why!
And the system is leaky
Fed up of newspapers carrying stories based on documents and letters signed by him, a senior government finance ministry official recently told a reporter under whose byline one such story had appeared, I am soon going to put a system in place to ensure none of my communication gets leaked to you journalists.