Non-Banking-Financial-Companies NBFCs are minting money at cost of public-money deposited in banks where presently banks including public-sector ones finance these NBFCs for money-lending business. It is noteworthy that owners of some NBFCs are themselves in news for extra big questionable bank-loans. There must be a total ban on banks financing for purpose of money-lending business.
Banks are charging undue interest-rate of even tune of above 40-percent per annum on loans taken through credit-cards where credit-card statements in bold letters are printed with a small 5-percent fraction of total bill-amount as Minimum-Amount-Due. Ignorant customers who usually do not read conditions printed in tiny letters just pay this printed Minimum-Amount-Due in total ignorance that they become liable for exorbitant interest-rate of above 40-percent per annum. Reserve Bank of India RBI and central government should fix some maximum annual interest-rate of say 18-percent that can be charged by any one including banks, NBFCs and even private money-lenders. Charging interest more than such fixed maximum rate may be an offence under Indian Penal Code IPC. Such a provision will also save farmers taking loans from private money-lenders at exorbitant interest-rates.
SUBHASH CHANDRA AGRAWAL