I have explained over three previous pieces how banks, aided by a hands-off Reserve Bank of India (RBI), are giving a raw deal to those who have taken home loans. My focus in those pieces was to explain how “floating rates” are a sham. Last week I was chatting with K C Chakrabarty, former chairman of Punjab National Bank and former deputy governor of the RBI. He explained to me that the way the floating rate regime was being implemented was non-transparent and discriminatory. “In a floating rate system, the bank’s interest rate fluctuates with the floating reference rate. Now
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