While reading this wonderful editorial by Ila Patnaik,
Who stops banks from serving the aam aadmi? More than unions, it’s control-obsessed RBI. And banks love it
A few more questions popped into my head.
1. Why do banks advertise higher interest rates for Senior Citizens and NRI?
Shouldn’t the terms on a Fixed deposit be uniform? Or the government knows that at old age there is a memory loss and a large percentage of the funds collected under old age scheme shall never be refunded.
Pegasus,
Not memory loss, old people are more likely to die and no one would come to claim the money.. Sick sarkari attitudes.
Comment by shadows — April 2, 2007 @ 3:39 pm
wow.. if that is so.. then it would be the smartest way for the banks to generate extra profits
Comment by pegasus — April 2, 2007 @ 3:42 pm
That comment is not fair to the banks. More than the average guy, a senior citizen makes use of the nomination facility to pass on the money to his heir. Or shall I put it this way? The heir makes sure that he is nominated to receive the money.
Comment by ramanathan — April 6, 2007 @ 5:53 pm
@Ramanathan…
agreed.. i would also like to believe your words (and have no proofs to prove it otherwise) but however can you care to explain/speculate a rational reason why there is this market distortion.
Comment by pegasus — April 6, 2007 @ 8:26 pm