Cartelising savings bank rate? - S.S.Tarapore

Whether or not the Competition Commission has issued a notice to banks, the issue of savings banks rates should act as a wake-up call for the RBI

.....In an ideal situation, the industry regulator (RBI) should first intervene and only if the issue is unresolved, the Competition Commission should intervene. In the present situation, the RBI is aware of the ground realities. If it felt that there were signs of cartelisation, it should have used strong moral suasion to ensure that banks do not cartelise. Its silence could indicate that the RBI does not see this as a case of cartelisation. It is not clear whether the CCI has issued a notice to banks. Even in the absence of a formal notice by the CCI, this should be a wake-up call to the RBI and alarm bells should be ringing for banks........

Read - HBL