Friday, January 3, 2014

RBI’s strange ways

Your editorial ‘Bond better’ (Business Line, January 2) captures well the reasons for the lukewarm response to the inflation indexed certificates. These are neither attractive nor acceptable to the middle class and lower middle class, which include retired persons and pensioners, as they involve cumbersome procedures, offer unattractive rate of return, do not ensure adequate cash flow and are not intelligible to many among the investing class. Why the RBI should undertake this retail issue of certificates though through banks to small savers is a mystery.
 

T.V. Gopalakrishnan

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