Central and state governments race for gaining sympathy of farmers by loan-waiver schemes, which in fact is more harmful for them because farmers cannot receive any bank-loan after once availing loan-waiver. This pushes them back in hands of money-lenders who take undue advantage by charging extra-ordinary heavy rate of interest.
Apart from this, banks issue credit-card statements boldly depicting Minimum-Amount-Payable but credit-card users are unaware that they have to pay as much as 48-percent annual interest on availing such facility or even more in case of defaults. Moreover unsecured loans are sold by banks and Non-Banking-Financial-Companies NBFCs at times at exorbitant interest-rates crossing even 20-percent per annum.
Reserve Bank of India RBI and Union Ministry of Finance should fix some maximum interest-rate of say 18-percent per annum inclusive of any other levies like penalties etc which may be chargeable from anybody by anybody in the country. Charging interest more than maximum fixed should be made non-bailable punishment under Indian Penal Code.
This system will not only be beneficial to farmers but also specially to mute section of middle-income persons which are presently easily gripped through frequent calls from private banks and Non-Banking-Financial-Companies NBFCs for sale of loans and credit-cards. It is an admitted fact that banks are at heavy loss in case credit-card holders regularly pay on time without any default or availing undue facility of Minimum-Amount-Payable boldly printed on credit-card statements.
MADHU AGRAWAL