For the past many months, banks have been parking about Rs 6 lakh crore to Rs 7 lakh crore on a daily basis with the Reserve Bank of India (RBI) for an overnight period for just 3.35 percent. This has drawn a lot of criticism, with experts questioning banks as to why they aren’t lending loans instead of parking money for such a low interest rate?
CNBC-TV18’s Latha Venkatesh explains what the reality is on 'Money Matters'.
Professor Ananth Narayan has explained this concept in detail on www.cnbctv18.com. Read here:
To watch other videos in this series, click the Money Matters tab below.
First Published: Sept 7, 2020 9:40 AM IST