Interest rate on 8 small saving schemes cut by 70-140 bps

Very good opportunity for IT Added,n good opportunity

Extremely bad timing by the regulator and the government to touch interest rates at this point of time. All the senior citizens and people with low risk appetite will be in limbo on what to do now and how to manage their funds to take care of their basic expenses. They didn't even get a chance to invest or renew their investment at a higher interest rates because of the lockdown. There is no social security in place for them. They will have to put their entire life's savings at risk to manage their day to day expenses now which is extremely dangerous. Secondly in the coming time inflation is going to spike up and this will wipe off their savings. Government is advertising about Gsec meaning they do need money and this was a much better and efficient way of getting long term money which is closed now.

Also the government and regulator are helping banks to maximise their profits at the cost of crores of investors. Secondly we all know who banks lend the money to. The regulator recently announced that an amount of Rs.2.8 lakh crores has been given to banks in last 3 years than where did this money go? Also even after misselling all the third party products why are banks favoured by them so much is surprising. Banks lend the money to a the wrong people which I am sure is an eyewash. There would be some give and get in this because banks don't give their own money but investors money to them and I am sure some bribe would be involved in these deals. How many of bankers from top to bottom has been punished is a biggest question. If banks don't make profits it is their mistake and they don't know how to do business than why should we suffer. Also sometime back there was a cashless drive in which the government encouraged everyone to use digital method and at the same time banks started charging every online transactions and made extra buck. I don't understand why should banksake money like this? They have to be capable and prudent enough to not lose or earn properly and why should they be dependent on government and regulator to help them to earn since they are not capable? Should the charges not be zero for everyone to use digital method?
This way banks will have to be saved everytime and not at all a permanent cure bit just a temporary cure which will not solve anything but only complicate the system.

So the biggest question is when banks maximise their profits what happens to the money they earn. Where does it go?

Dear Prashant,
You have mentioned one side of coin, otherside is the lower intt. rates on Loans and Advances which gives relief in EMI as well as gives cushion to aborve price rise thus keeping low rates of essential commodities. Perhaps you are not abare that now a days NEFT and IMPS is totally free and SBI has waive off min.balance criteria sooner other banks will follow the suite. reg. senior citizens,most of have pension and in such times every budy has to bear some crunch.

You have mentioned NSC as compounded annually, isn't compounded semi-annually?

Govt has been swift in many areas as precautionary to not have economy slow down. The interest rates have been slashed drastically, but what on passing on the benefits of the rate cuts to the common people like the reduction in interest rates, the penalty charges. They continue to be the same?