ECONOMIC SLOWDOWN AND FAILURE TO PROTECT SAVINGS.

Of Late there is hue and cry about Economic slowing down in this country and many attribute this due to lack of funds in corporate sectors, automobile industry retardation due to lack of funds, and GOI lack of support to various major and minor industries. Strictly speaking this is not so as the power of purchase by the public in large, especially the Middle class population which contributes a major force in the economy deciding factor of this country. The GOI has forgotten this and by imposing punishment like decisions on this major economy deciding sector of the population has cripled the throat and tied up their hands. The banks /RBI has practically directly and indirectly imposed various charges / penalties on withdrawals, saving limits, money transactions, etc etc. They have also indirectly threatened the depositors in accruing their saving in banks more than Rs.1Lakh as such money do not get any protection when the bank sinks due to various reasons (mainly due overdraft, Non Performing Assets, etc). Hence many depositors have begun withdrawing their savings and deposits and invest them elsewhere. The Banks continuously reduce the SAVINGS INTEREST FOR REDUCING THE LENDING (LOAN) INTERESTS and since the depositors do not get any adequate income from their savings they have stoped spending over and above their income from the interests from the bank. The GOI, Min.of Finance as as RBI must understand that the major chunk of Bank depositors are from Middle class people, who are either Salaried people, or Pensioners, or Private Employees, self employed people, etc, and the business circle which deposit sumptuous amount try to get more than deposits in the form of overdrafts and Loans. Thus floating money comes only from Middle class people. Apart from this the GOI /RBI must understand that all depositors in the Banks are not well to do and even beggars (recently media said that a beggar has Rs.1 lakh in cash with her and also deposited some lakhs in the bank and such instances are coming in media often) handle bank accounts. Hence it is not wise and humane to reduce saving interest and imposing too much restrictions and penalties on account holders. Apart from this, the GOI is going on duping middle class people by not reducing the INCOME TAX RATES from the existing rates and not increasing the minimum taxation limit. This will not go a long way in getting the public support. more