Sunday, January 4, 2009

RBI taking irresponsible risk on our money

By reducing the interest rate and fractional reserve ratio, RBI is forcing banks to take irresponsible risk on my money.

As an investor I would not agree to give out my money for cheap in this economic scenario. But I do not have control as RBI is deciding the interest rates.

Governments are foolish and corrupt to play with my money like this. People should protest by withdrawing all money in FD in banks. We should not let RBI take undue risk on our money.

The fiscal stimulus leads to a higher fiscal deficit, which again will make money in bank less valuable. Government and RBI is punishing savers and pensioners.

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