The reason for dwindling deposits can be traced to unattractive interest rate offered to depositors by banks The current rate of interest on fixed deposits or term deposits is disappointing for the retired persons. Dwindling deposits also tighten the banks in lending to the needy also. Deposit rates have been pruned by 100 bps in the last one year. Interest rate policy needs to be reviewed for upward revision if the banks have to attract more deposits. Further, there needs to be interest rate protection beyond which there should not be no reduction if the depositors interest are to be protected. Adding to the woes of falling interest rate, a report stated that several hundred customers are said to have lost lakhs of rupees after their accounts were hacked in State Bank of Mysore.This shows that depositors money is not safe in nationalized banks also. If people are depositing money in nationalized banks it is because that the money would be safe here. RBI needs to evolve a policy to mobilize more deposits from public which is good not only for the depositors but also for the nation as a whole.
KV Seetharamaiah, Hassan, Karnataka
The 500 Indians, who have allegedly stashed up unaccounted funds abroad, are all small fish, and only a tip of the iceberg. Real culprits are the unscrupulous politicians, who have parked their ill gotten wealth—which may run into trillions of dollars— in foreign countries, under pseudo-names, that can never be traced back to to the actual beneficiary. The big sharks always go scot-free making the smaller ones their scapegoats.
Arun Malankar, Mumbai