It is the common man who parks their funds in the banks and Posts as there are no safer alternatives. The rich and affluent have put their wealth in foreign banks. They do not seek refuse in Banks in India. These Industrialists etc only tap the resources and turn the bank finances into NPA’s. Easy access to finances due to their connections and influence are used to build their empires at total public costs. The cost of inputs being substantially cheap, the final products do not reflect in the process, It may be that the buildings sector may enjoy concessional loans and not everyone takes advantage of this facility. The conditions of these loans are well secured not so the industrial loans running into crores. Have those who take loans for industry commerce are under any obligations to offer cheaper products and how many of these loans have not turned into bad debts and written off as not recoverable?.
The finances available may be cheap, but the prices of all basic food and goods have risen sky high beyond the reach of most. The bank customers are sitting ducks and captive audience to be saddled with all types of sundry charges to make up for the general losses in the name of service charges. The services have deteriorated very badly. The bankers enjoy all sorts of facilities, loans at one percent less and deposits also attract higher rates than other customers being bank employees. The employees are not expected to tighten their own belts in order to shore up the financial health of their own institutions, but pass on the burden on customers.
The service charges on LIC premiums are abhorrent. The LIC organisations say just sending reminders for premium payments is only courtesy and not contractual binding. Lapse and revival of policies due to non-payment of premiums in time costs the holders much with fresh medical checkup costs to boot and fines for revival with threats of discontinuation and total loss. The returns to holders of policies is a pittance and even final payment to dependents is not without hassles. The resources of LIC are easily available to the Nation for developmental works. The facilities to LIC employees is mind boggling and best left it at that. The falling returns on interest rates is affecting much larger populations than benefits forecasts. Is it worth investing in banks with diminishing returns or just keep away and spend your hard earned resource, because after a time the invested amount does not buy what you could purchase today. Just imagine what is there for customers of the banks.
