Depositors’ interests must be paramount - Dr.S.S.Tarapore

..........While the RBI would no doubt wish to wait for the Nachiket Mor Report, there is one issue relating to the savings bank deposit rate, which needs urgent attention. In remote rural areas, the first contact a customer has with banks is through the opening of a savings bank account. As part of the financial liberalisation, term deposit rates were freed in the mid 1990s and each bank now fixes its own structure of term deposit rates. Since the mid- 1990s, the deregulation of the savings bank deposit rate has been debated extensively. The major banks have made shrill noises that deregulation of the savings bank deposit rate will result in chaos.........

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