India’s largest PSU bank SBI cutting the interest rate on saving account with an amount less than one crore to 3.5% from 4% while retaining 4% for sb a/c over one crore rupees is favoring the rich which would further widen inequality, and that is bad news for a poor country like ours. Only the super rich have over one crore in their SB account, and such biased banking regulations that favor the rich must be stopped by a democratic govt at the Center through RBI intervention.
Inflation is on the rise while the income of most of the people have fallen drastically. The poor and the retired depend on interest on their SB account to make both ends meet. The rich have multiple sources of income and banking policies should always be skewed to favor the poor to encourage them towards banking system and digitization. One fears other banks too would emulate SBI and governments urgent intervention to stop this rich favoritism would be appreciated by the masses
(The views expressed by the author in the article are his/her own.)