Tuesday, May 3, 2011

SBI not in favor of further hike in policy rates

Due to the constant rise in the policy rates from Reserve Bank of India, the lenders and the borrowers are already in much pressure despite that the Central Bank is all set to hike the Key policy rates once again.

The Chairman of State bank of India Mr. Pratip Chaudhuri expressed his concern about the issue and said that the ongoing hike is no good and it might deter growth.

On the other hand RBI is taking all the necessary steps to rectify inflation and the hike in the interest rate is a part of its strategy.

The Central Bank has recently issued a discussion paper regarding the deregulation of the saving bank account interest rate, with which an individual could earn interest up to 6 percent on his saving account deposits. In this regard he said "We are not in favour of deregulation but adequate incentives for saving bank deposits. We will go along with whatever the Reserve Bank of India prescribes."