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control obsessed RBI

While reading this wonderful editorial by Ila Patnaik,

Who stops banks from serving the aam aadmi? More than unions, it’s control-obsessed RBI. And banks love it

A few more questions popped into my head.
1. Why do banks advertise higher interest rates for Senior Citizens and NRI?
Shouldn’t the terms on a Fixed deposit be uniform? Or the government knows that at old age there is a memory loss and a large percentage of the funds collected under old age scheme shall never be refunded.

4 replies on “control obsessed RBI”

That comment is not fair to the banks. More than the average guy, a senior citizen makes use of the nomination facility to pass on the money to his heir. Or shall I put it this way? The heir makes sure that he is nominated to receive the money.

@Ramanathan…
agreed.. i would also like to believe your words (and have no proofs to prove it otherwise) but however can you care to explain/speculate a rational reason why there is this market distortion.

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