Home loans loot: Whose side is RBI on?

Remember, RBI is concerned with lending, since cutting rates has not pushed up economic activity

A few days ago all newspapers carried a story headlined “RBI not satisfied with MCLR (marginal cost of funds based lending rate), asks banks to lower rates further”. Many were probably impressed that the Reserve Bank of India (RBI) was trying to give a fair deal to consumers. Those with loans may have looked forward to reduced equated monthly instalments (EMIs). Well, the facts on the ground are quite odious and this is proved by the fact that headlines like this are frequent. Banks run a business that is essentially ‘heads I win, tails you lose’. As mentioned in my