Letter to BS: Mindless rate cut by RBI is a step in the wrong direction

Banks may not like to give loans to financially unstable companies. A major reason is dwindling and fast-diminishing demand

This refers to “RBI snips rate, growth forecast” (May 23). Mindless rate cut by the Reserve Bank of India (RBI), which the banks or the businesses never asked for, is a step in the wrong direction. Besides not benefiting anyone, it may tremendously hit senior citizens who continue to grapple with sinking interest rates. In the absence of any old age pension and securities, steep drop in interest rates is forcing them either to dive deep into the stock markets or beg from their children to survive.

Banks may not like to give loans to financially unstable companies. A major reason