It’s all About that Rate

This refers to ‘Chits are not Cheats’ (ET, Apr 25). The article makes the RBI the villain of the piece. Spreading banking through physical branches and mobile technology cannot be an insurance against people falling victims to Ponzi schemes. When banks offer low rates of interest on savings, people will be attracted to schemes that offer higher rates. The 2008 financial turmoil in the West was also caused by low interest offered by banks on deposits and investors looking for higher yields in unregulated markets. 

- S SOLOMON RAJ (ET)