If RBI can't cut CRR, let them pay us interest on it: SBI | Business Standard

If RBI can't cut CRR, let them pay us interest on it: SBI | Business Standard
Online comment posted on June 17, 2013:
Let us not presume that SBI Chairman is not briefed correctly about the concept of CRR in the Indian context, or about the times when central bank had paid interest on CRR accumulations above certain threshold levels and why or when the practice was discontinued. Coming to the limited offer from him to ‘pass on’ entire benefit from a CRR cut, in these days of Direct Benefit Transfer, RBI could as well consider crediting such benefit direct to the borrowers’ accounts on the basis of information furnished by banks, instead of using banks as a ‘conduit’. The demand from SBI Chairman is comparable to a tax payer telling GOI to treat ‘tax’ as borrowing from him and pay interest at market rate or stop collecting tax. 

M G WARRIER

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