An Open Letter to Mr. Raghuram Rajan, RBI Governor

Dear Mr. Raghuram Rajan,

I know you were under great pressure from Industry & Government to reduce Interest rates & you gave a surprise today to one & all by reducing 50 basis point Repo rate cut. Though it is good to think of Indian Industry but remember that still 80% of Indian people are those who put their savings in Banks & Post offices to earn something from their savings. All those 80% people of India don’t like your generosity to reduce Repo rate so blatantly. You must know that now most of the poor, middle class people & retired people of India shall earn 0.5% less on their savings.

It’s good to think about Indian industry but it is equally important to think about 80% Indian population who earn some good interest from their savings. Stock market shall always feel great that Interest rates come to near Zero level, like it was for 7 years in America. Mr. Rajan, do you know that American people are frustrated with the interest that they get on their savings. They hardly get 0.25 – 0.3 % on their savings. Do you want to make India another America where people hardly earn anything from their savings. So Mr. Rajan, I have no ill will towards you, you are doing a great job, but don’t come under pressure of Indian Industry & Indian Government to reduce rates so blatantly.

Dear Mr. Rajan, you have reduced Repo rates by 125 basis points in one year, which means, Indian people who save. shall earn that much less interest on their savings. So hope you shall be Very Cautious Next Time & think of 80% of Indian population who earn some what interest from their savings & live their lives in a happy manner. Don’t make their lives worse.

Regards,
Sanjay Chopra

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