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Q.

Why does Government not take those banks to task who are not following the market rate of interest?

Asked by dp, 22 Jun '09 03:04 pm
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Answers (4)

1.

If u want to get lower rates of 7.5% fixed for entire tenure of loan u can contact
Sujith 09980807164
Answered by Almighty, 24 Jun '09 01:33 pm

 
  
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2.

It cannot be done. The reason is

1). RBI increased CRR by 25 BPS which means each bank has to deposit 25BPS of cash reserve with RBI. So, SBI largest bank having 11,000 branches deposits a huge money with RBI. Depositing with RBI has a very less effect to the banks since the lending rates go up and simultanesoly they increase the deposit rates and acquire the money thru this route. Same process happens with all the banks in India.

2). RBI reduces CRR by 25 BPS and to that effect RBI releases the money. In this case SBI the largest bank with a huge customer base has to lend the money received from RBI and to that effect they have reduced the rates very drastically. But banks like ABN Amro (already into trouble internationally) after receiving the money
will divert the funds globally. So there is no necessity for them to reduce the rates since they do not hold the money.

So, Govt cannot question them but request them to reduce the rates.
Answered by nellore kishore, 22 Jun '09 03:12 pm

 
  
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3.

Govt hardly has any hold on Pvt banks
Answered by Shashi LS, 22 Jun '09 03:08 pm

 
  
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4.

Didnt get ur question
Answered by ashish bohra, 22 Jun '09 03:05 pm

 
  
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