lThe Hindu Business Line : Time for some quick action by banks, RBI
It is very interesting and informative to read the article by Sri Sitarama Murthy (former MD of SBM, Bangalore) who is a seasoned banker and a prolific writer on banking matters. Ever since interest rates were deregulated for the banks in India to decide the major chunk of the deposits and loans to be brought under the scheme, there have been several developments too like introducing of Prime Lending Rate, Benchmark Prime Lending Rate and recently (July 01, 2010) of Base Rate system.
While there have been certain corrections through CRR, SLR, Repo and Reverse Repo Rates as also checking of inflation rates and stabilising the Foreign Exchange Reserves on the part of RBI, individual commercial banks (public or private or foreign) have the responsibility to make certain changes appropriately. SBI has done it. Others would also follow shortly.