Tuesday, March 11, 2014

S/B ACCOUNT





I am not an economist. I am a simple middle class man and I feel my money isn’t being used for mine or society’s benefit.

In the last decade or so, we have heard of unbelievable numbers running into thousands of Cr of Rs of corruption. Some important and comparative large numbers go unnoticed or get accepted as a fate accompli.

As per a report (in 2005) prepared by Division of Theoretical Statistics and Mathematics and Department of Statistics, The University of Akron,USA............
There are 320 million (32cr) savings bank account holders in India which have deposits of Rs 472,147 Cr.

As per RBI rules; each savings bank account holder must maintain a minimum balance of Rs 1000 each. It sounds so simple, doesn’t it? It is 32x1000 =equals a staggering sum of Rs32000 cr. At any given point of time, Govt is sitting on this huge sum of money which is essentially that of middle class. The balance in savings bank accounts earn an interest of 3.5% which is effectively app. 2.8% as interest is paid on the minimum balance between 10th and the month end. Considering a rate of inflation at 13%, who are they fooling with 2.8% interest?  It is the same middle class who asks and deserves a subsidy in essentials, but, is taught basics of economy. Banks are borrowing at 2.8% and lending the same money at over 10% to those who are converting this money into NPAs
.
Incidentally, a Current Account holder has to maintain a minimum quarterly average balance of Rs 5000.Normally,every business, small or big, holds a current account .Hypothetically, if current account holders are even half(it may actually twice as much) of saving bank account holders....It is a wooping sum of Rs 80,000 cr.

As per commodityonline.net, Non performing assets or bad loans of 40 listed banks jumped by 38% or around Rs 35,424 Cr in the first six months of current financial year ending Sept2013.According to a study by NPAsources.com, as on 31st March, net NPAs of 40 listed banks were Rs 93109 Cr which rose to Rs 128533 Cr as on Sept 2013
.
Why is middle class always a victim of Govt policies?



Let us CHANGE INDIA for INDIA OF TOMORROW









20 comments:

Sandhya said...

I didn't know many of the points you have pointed out here, Chowlaji! Our hard earned money is wasted in so many ways...

SG said...

Excellent post Mr. Chowla. And, this money of poor/middle class people is given to big guys as non-repayable loan. Then, write it off.

Rahul Bhatia said...

Sad state of economy where the salaried class faces the biggest brunt!

Shilpa Garg said...

That were some eye-opening statistics!! :|

Rachna said...

Oh Gosh! These are some terrible stats.

S.R.Ayyangar said...

This apart, crores of rupees are-locked up in inoperative/dormant accounts unclaimed by the depositors or their heirs.

jaish_vats said...

I was not aware of all these stats. Informative post.

Usha Menon said...

This post is an eye opener! The hard earned money of general public is being misused by those who are supposed to protect it. So sad.

BK Chowla, said...

Sandhya,
Yes,becuase we dont apply our minds to such stastics,we get taken away for a ride

BK Chowla, said...

SG,
Thank you.

BK Chowla, said...

Rahul Bhatia,
It is always the salary/middle class which suffers

BK Chowla, said...

Shilpa Garg,
Thanks.
I do take stastics seriously

BK Chowla, said...

Rachna,
At times, it could even hurt

BK Chowla, said...

S R Ayyangar,
I know and If one would to add up all that,it could be amonumantal number

BK Chowla, said...

jaish_vats,
Thank you.Good you liked it

BK Chowla, said...

Usha Menon,
Thank you

R. Ramesh said...

excellent analysis sirji..sorry bkc sir..i could not be in touch for long as i was tied up with daughter's wedding..all's well...thanks for all the support and wishes..

anilkurup said...

Mr. Chowla you have a great point, a question here. I guess it has to be asked to someone in the officialdom. Why do not you write to the Editor of a National daily?

As for the NPAs the willful defaults are more than genuine failures.Yes patronised by men in power.

BK Chowla, said...

R.ramesh,
Thank you.
I hope all went well during the wedding.
My best wishes to the young couple

BK Chowla, said...

anilkurup,
You have a point.May eb I should writeto an editor.