Bankers expressed reservations on the Reserve Bank's proposal to deregulate interest rates on savings bank accounts. They said such a move will hinder stability of banks.Indian Banks Association's Chief Executive, K Ramakrishnan, told PTI in Mumbai that if the deregulation comes, there can be a flight of deposits which will hurt banks' stability. All the banks are opposed to the move. RBI Deputy Governor Usha Thorat had last month said deregulation of interest rate on savings accounts is on the central bank's radar and a working group will soon be set up to examine possibilities of the same.
News On AIR | October 5, 2010 9:06 AM
Savings A/C deregulation to banks hinder stability: bankers