Monday, August 3, 2009

Are investors disgusting creatures?

‘Disgusting are those who invest money in banks and live with the interest accrued’, is the latest revelation of the nutty Kerala Cooperation Minister G Sudhakaran. He is the top executive of the state run Kerala Co-operative banks. It is, therefore, the time for all the investors in co-operative banks to withdraw their FDs and reinvest in other banks. I fear Sudhakaran may soon issue orders to not pay interest on savings in co-operative banks.

Though most of the outbursts of this minister are senseless I would like to bring his attention the following aspect. Deposits by non-resident Indians (NRIs) in Kerala banks is Rs.34,649 crore as on Dec 31, 2008, according to the State Level Bankers Committee and a major chunk is with co-operative banks. If the NRIs withdraw their investment naturally the functioning of the bank would paralyze. Does the minister want to see that?

A retired person often puts his hard earned money in banks to get the interest to meet his needs. He is not in the position to start a business of his own and earn profit. Moreover, it unwise to start a business at the fag end of one’s life as it is likely to collapse. And that is why he wisely deposits his money in a bank. The bank would then issue this money to needy entrepreneurs and thus money invested in the bank by a person is not dead money as the minister thinks. It is cruel to call those investors in banks as ‘disgusting’


K James Wiiliams.

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