NEWS & ADVICE : FIXED DEPOSITS
SBI finance head says that slashing policy rates may not harm economy
By Neelima Shankar
Dec 10, 2012
Print    Email    RSS   

If Reserve Bank of India (RBI) reduces policy rates to sustain growth, there may not be any harm in it, said the Managing Director and CFO of State Bank of India, Mr. Diwakar Gupta.

He explained that as increasing interest rates 13 successive times could not control inflation; decreasing policy rates may not be harmful either. He said that inflationary conditions persist due to poor response from the structural side. He observed that government expenditure was not creating value and that fiscal policy needs to be re-oriented to manage inflation. He added that if government expenditure was used for building infrastructure, then even higher levels of deficit may not become a problem in the short run.

He also talked about new banking licenses and said that earlier banking licenses were issued with the view that it will accelerate penetration of banks in all regions across the country. However, the results were not satisfactory. According to him, every new bank should be given financial inclusion targets and the government, and Reserve Bank of India, should make sure that the new banks are fulfilling the financial inclusion targets.


(Comments Posted : 0) Post Your Comments
Show All Comments
COMPARE QUICKLY
 Select a product:
 

CALCULATE QUICKLY
 Select a product:
 

EDITORS' PICKS
An Overview of Wealth Management Services...
Recurring deposit facility by IDBI Bank
Carnival of Indian Personal Finance Blogs #1
Do you know what led banks to calibrate...
For what purpose do you want to invest in...


NANGAL: CaℒL Giℛℒ In Una 09855660911 Escoℛt...
Chandigarh@CaℒL Giℛℒ In Rajpura +O9855660911...
If I invest 100000 rupees deposit for 2 year , how...

NEWS THIS WEEK
Federal Bank launched V connect for its customers Feb 12, 2015
Andhra Bank on expansion mode Feb 11, 2015
Dena Bank earned a profit of 13%. Feb 9, 2015
Banks expected to cut down the rates Feb 5, 2015
RBI kept the rates unchanged Feb 4, 2015
News Archive