VIJAYAWADA: Machilipatnam MP V Balashowry, who is a member of the Public Accounts Committee (PAC), wrote a letter to Prime Minister Narendra Modi, urging him to take steps to build confidence among people of the country that their deposits in banks are safe.
In the letter, Balashowry mentioned that Savings Bank deposit is a hybrid product used and maintained by individuals and households. As a part of financial sector reforms, RBI had deregulated interest rates on deposits in 2003, but it did not touch interest rate on Savings Bank deposits and since then the rate of interest on Savings Bank stood at 3.5%; which is very low. But, taking shelter under the recent Monetary Review of the RBl, the SBI has slashed interest rates even on Savings Bank deposits. “Taking advantage of this, other public sector banks may bring down the rate of interest on SB deposits,” he said.