Bank heads have requested regulator Reserve Bank of India to consider not deregulating savings bank rates.
The CEOs of most banks met RBI governor, D Subbarao in a meeting wherein they opposed the idea of deregulating the savings account rates. The savings account rates are currently fixed at 3.5%.
A committee has been set up by the apex bank to look in detail the pros and cons of deregulation of the interest rates.
"These are uncertain times. There is uncertainty about inflation, interest rates and growth. Therefore, in such times, we have suggested that, perhaps , this may not be the right time to consider a deregulation in rates," said a banker.
"Many of the common people don't have time to apply their mind and shift money from savings to deposits, etc. So, for heaven's sake, give one banking instrument, one bank account where the man knows that this is the interest rate, this is the facility. This is required . I would even say, particularly , it is required for women in India whose money should be safe from their husbands ," former RBI governor YV Reddy had said recently in oppostition to deregulation.