Continues
from the previous post -
Government often
treats funds by public in these safe deposit and recurring deposit as
it is property of that bank. This behavior is unjust to all
depositors as their funds are exploited for uses to what their prior
permission is not taken, this amount to cheating and theft by
government. Banks are forced to do many charitable activities by
government; all these must stop. When bank takes money for safe
deposit or recurring deposits banks do not take such permission and
so this is breach of trust by both bank as well as government.
Depositors must be treated as sleeping partners in the business of
banking and given due rights in the business.
From available
records from years, 2011 to 2012 and 2015 to 2016, the share of
deposits in the household financial savings has come down.
Nevertheless, it remains a major part of how people save. If interest
rates on deposits come down, people need to save more to meet their
savings goal. This means lesser consumption, market suffers, which
has an impact on economic growth. There is also a possibility of not
saving enough and not meeting their savings goal, which again is not
a good thing. This could mean not having an adequate amount of money
for the education of children, among other things. On one side,
costs are rising and income reduced makes it impossible for middle
class to put more money in FDs and RDs. Reducing bank deposits makes
the bank short of funds for business. The complete circle of
financial moment suffers. As a result, often depression and inflation
effect we experience. When we had in the past, proper balance in bank
deposit interest rates and loan interest rates we never had
depression or inflations in India, this fact we must not forget to
note. Only after suicidal reduction in interest rates, were
introduced; and we were forced to put our money in stock exchange
where gamblers have free field ordinary investors began to feel the
pinch. To work in these markets one has to be well versed in that
market. It is a full time business to be successful in those markets.
This is not possible for ordinary people who have savings accounts.
Bad loans owned by
the government would sharply increase. As most experts predict.
However, this is not a new thing since most loans of government are
bad loans because government has a tool of taxation to manage them by
additional taxes.
Continues
in the next post –
You may contact
me on my Email ID given below,
You are invited to
visit my other blogs
Ashok
Kothare,
http://ashokkotharesblog.blogspot.com/
for stories
I
reckon,
http://kotharesviews.blogspot.com/
for philosophy
You
may visit blog, Ideas
and tips on any subject,
http://kotharay.blogspot.in/
for intelligent discussions.
My
Marathi Blog,
http://kothare-marathi.blogspot.in/
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