ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

Articles by S S SangwanSubscribe to S S Sangwan

Repo Rate and Bank Credit

The Government of India has, on more than one occasion, mounted pressure on the Reserve Bank of India to reduce the rate of interest to encourage investment. The RBI has, however, remained cautious, but has reduced rates gradually since early 2015. At lower rates of interest, the fixed and administrative cost acquires more weight in the banks’ cost of funds which restrict their ability to reduce rates in proportion to the repo rate reduction and the gap between the two tends to widen. Lowering repo rates has not accelerated bank credit.

Bank Preference in Punjab

This has reference to the letter of N P Mohapatra (“Financial Inclusion”, EPW, 16 August 2014) on my article, “Bank Preference for Financial Inclusion in ­Rural Punjab” (EPW, 26 July 2014).

Bank Preference for Financial Inclusion in Rural Punjab

The Nachiket Mor Committee favours regional banks for meeting the goal of financial inclusion in rural areas, but a survey of two villages in Punjab points to the fact that small branches of commercial banks are the preferred option of villagers.

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