Letters: A non-issue

With reference to Sitharam Gurumurthi's piece, "Should the CRR be abolished?" (April 20), the timing of raking up such a baseless question raises doubt, more so because the cash reserve ratio (CRR) - retained at four per cent by the Reserve Bank of India (RBI) since February 2013 - does not impact the lending rates of banks at all.

None of the banks, not even the State Bank of India, fell in line with the announcements of the various cuts by the RBI in the repo-rate (aggregating 150 basis points) since January 2015. Profit savvy banks in a desperate bid to shore up their respective balance sheets in the public eye have largely been non-cooperative with the RBI. Of course, the SBI suffers from a self-imposed superiority complex and there has been no change in its attitude. At times, it even tries to equate itself with or surpass the position of the RBI.

Read more from our special coverage on "CRR,SITHARAM GURUMURTHI"

• Letters: Confusing analysis

S Kumar New Delhi

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