CORRECTIVE MEASURES NECESSARY TO CONTROL PRIVATE BANKS GOING UNDER MORATORIUM WITH LATEST ONE BEING LAXMI VILAS BANK
Bureau,Odishabarta
DELHI:It refers to central government under advise from Reserve Bank of India (RBI) putting Laxmi Vilas Bank under moratorium on 17.11.2020. Only recently YES Bank was put under moratorium on 05.03.2020 for some time, but later lifted. However similar restrictions in case of PMC Bank put its customers in great difficulty when there were even deaths of some customers who could not bear the brunt of blocking of their hard-earned money in PMC Bank.
Since private banks give more interest than public-sector banks, depositors park their hard-earned money in private banks in want of more income. Several private banks are paying interest upto seven-percent on savings-accounts which is much higher than paid on fixed deposits by public-sector banks. Customers are lured by such private banks through super-costly sponsorship of very popular TV programmes.
RBI should enforce uniform interest-rates both for deposits 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 by paying higher interest-rate. Banks then may compete by offering better services rather than risking money of depositors in private banks. All private-sector banks should be under RTI Act under section 2(f) of RTI Act with information procured through regulatory authority RBI.
All bank-accounts and deposits of central and state governments and their public-sector-undertakings must compulsorily with public-sector banks only. Salary-accounts of employees in governments and public-sector should be with the respective public-sector banks where employer-authorities have their bank-accounts for easy and convenient banking through transfer. Employees may thereafter transfer funds from salary-accounts to any other bank if they so desire. Otherwise also governments should be duty-bound to promote public-sector banks.
Input;Ms.Madhu
