Letter: Deregulation works

It is interesting to see the way in which banks are reacting to the Reserve Bank of India’s credit policy announcement. Some banks have cut the lending and deposit rates for select maturities. Others have preferred to cut the lending rates by specified percentage points, keeping the deposit rates unchanged. This is an era of deregulation — which helps banks make their own assessment of market needs, keeping in mind the resources available to them. For sure, deregulation is achieving the intended purpose.

Srinivasan Umashankar Nagpur

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