Many nationalised banks now offer 10.5% to 11% interest on fixed term deposits. Unfortunately, the postal monthly income scheme (MIS) controlled by the central government pays only 8% interest to all categories. The government should raise the MIS rate of interest from 8% to 11% for senior citizens and 10.5% for others. Besides, the bonus on the scheme?s maturity should be kept at 10% and be made tax-free. With general elections approaching, the government will earn the goodwill of most people if it makes such a sensible move.
?Hansraj Bhat Mumbai
FII reforms
Certainly, the current credit crunch is the best time to initiate reforms of the FII framework and set up an operating platform for monetary policy (?Monday mantra?, Oct 13).
?Sakshi Aggarwal Ahmedabad