Here are some arguments fighting for financial justice to non-pensioner retirees.
From Sri Sridhara Yanduru based on Markandeyulu's campaign on fake income.
1. Interest on bank deposits is not to help people that save but to collect capital from people to help Businessmen and Industrialists.
2. It is also done to control inflation by deterring people from spending.
3. When production is more than demand, interest rates are brought down to promote spending.
4. In the process of deposits and lending, Banks make profits.
5. As Interest payout amount is very large, government taxes it to fill their coffers.
6. If Interest is made tax free, several Business and Industrial establishments will tend to put their money in Bank Deposits than put that to productivity.
7. Low interest on deposit will make products cheaper. Hence low interest rates are good for society at large.
Now the main point:
Unfortunately many in India live on Interest earnings. The worst is spiraling inflation. The life of pensioners is sustainable as they keep getting more DA.
Higher salaries and higher pension aggravates inflation further. Then further DA compensation.
But the life of people living on interest alone becomes miserable as the years pass by.
Further, if the Banks go insolvent, such interest dependent people will have to commit suicide.
But society does not care for others. Pensioners demand more and more and expect support from non-pensioners. They have associations (vote bank) for collective bargain.
Who the hell will care for non-pensioners and Interest dependents?
The comments made oh depositing in banks and interest earnings thereon are true. Unfortunately deposits upto Rs 1 lakh only are covered by the depot insurance scheme.This limit need to be extended to 5 lakhs.
ReplyDeleteFurthur I personally feel that those covered by pension schemes shpuld not fight for more benefits for themselves but fight to alleviate the miseries of all kinds to which senior citizens are subject.
The Govt does not understand the impact of interest rate cut by RBI on non pensioner Sr citizens. With an investment of Rs.20 lakhs in Bank FDs a Sr citizen getting a monthly interest of Rs.15,000/- a few years back , will now get only Rs.13,300/- a month slashing his income by more than 10%. When the inflation is down by 1.5 % the impact of rate cut is 10% on the budget of Sr citizen. Let the RBI Governor determine the monetary policy based on his own parameters but at the same time advise the Govt to evolve a scheme to provide 3% addl interest over the normal card rates to non pensioners in the absence of any social security in India. The Media economists cry tooth and nail to reduce interest rates as if it is the only solution to boost growth and bull run the stock market.
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