RBI role should be regulatory instead of advisory

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The response to RTI petition and the later clarification are somewhat contradictory. This type of confusion and contradictions are main cause of large-scale malpractices of multinational banks ruling their customers' interests in a victimising manner

CJ: SUBHASH CHANDRA..

Sat, Sep 26, 2009 11:07:16 IST

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RBI News :

RESERVE BANK of India (RBI) has clarified that banks are free to charge foreclosure charges on pre-payment of loans after the RBI had confessed in response to an RTI petition that the central bank was against banks’ policy of levying such foreclosure charges. RBI had also replied to the petition that it was in receipt of complaints against banks in this regard.

The response to RTI petition and the later clarification are somewhat contradictory. RBI's role as a central bank should be regulatory rather than mere advisory. This type of confusion and contradictions are main cause of large-scale malpractices of multinational banks dominating interest of their customers in a victimising manner.

People have been left at mercy of money-minting multinational banks in the name of ‘free economy’. They are forced into economic slavery of too many such banks. Even the Information Commissioner SN Mishra, during a hearing through video-conference on petition number CIC/PB/A/2008/0851, had to remind RBI officers that they it was their responsibility to take cognizance of these points brought to their notice through RTI petitions.

RBI should fix uniform interest rates, penalties, service charges etc for all the banks (private and public-sector) for deposits, loans and other banking services. Banks should compete through better service and personalised customer attention.

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