Deregulated interest rate structures left to the sole discretion of the individual banks in a way is proving as curse and gave a big handle to the banks to play with the market trends and tendencies with the sole objective of bettering their profitability unmindful of the impacts on the country's economy by such moves.Kamath is concerned only with his bank's liquidity and profitability and nothing else.I think,it is time again for RBI to regulate all interest structures for some time till the economy settles for the better.Given a free hand- away from the Govt's interference, RBI, with its excellent team and sincerity of purpose and dedication to its duty,is capable of setting right the situation in no time.It is the only non-corrupt institution in the entire country with superb work culture and super intelligentia still committed to the purpose.Our beloved prime minister Manmohanji who steered it previously knows it;at least during his regime,let the Bank enjoy its full independence in the strict sense of the term and play its role more effectively. With a total reformation,reorientation and broadened horizon,it is no more the same old "conutry's central bank"committed to mere note issue and supervision of the banks,but a dedicated institution with variety of instruments to control and combat the evils like inflation that plague the country's economy.It is for the Govt to allow it to adopt its own strategies in situations as this.Let us see how far it happens!!
