UNCERTAINTY OF PRIVATE BANKS NOW WITH YES BANK CALLS FOR ANOTHER ROUND OF BANK-NATIONALISATION

Bureau,Odishabarta

DELHI:It refers to Reserve Bank of India (RBI) now on 05.03.2020 imposing restrictions on withdrawal of more than rupees 50000 from an account in YES Bank. Only some time back, similar restrictions in case of PMC Bank had put its customers in great difficulty when there were even deaths reported of some customers who could not bear the burnt of blocking of their hard-earned money because of RBI instructions.

Main sufferers of such restrictions are senior citizens whose only income is from interest in Fixed Deposits. Since private Banks give more interest than public-sector banks, depositors park their hard-earned money in private banks in want of more income.

It is time that another phase of nationalisation of private banks may be initiated to prevent hardships to depositors in these banks, and to check irregularities in private banks. Massive irregularities were noted even in largest private-sector bank of India when its former Managing Director and Chief Executive Officer had to step down from the post. No one is sure that if fourth largest private-sector bank YES Bank can face trouble, then next number may be of some one higher or lower than YES Bank in ranking.

Till such high-level decision of nationalising more private-sector banks, RBI should enforce uniform interest-rates both for deposits and loans separately for private and public sector banks alike so that private banks may not be able to lure depositors to park their funds in private-sector banks. Banks then may compete by offering better services rather than risking money of depositors in private banks.

Input:Ms.Madhu Agarwal