SBI Vs RBI

Pratip Chaudhari

A couple of days ago SBI Chairman Pratip Chaudhari has urge  RBI to abolish  Cash Reserve Ratio (CRR), since the amount lying with RBI is drawing no interest also the banks are unable to use this amount for more productivity.The SBI Chief has asked the Central Bank to abolish the CRR or  implement this to all Non Banking Financial Company (NBFC) , Insurance co. , & all Financial co. He said if CRR is a inflation tool, then other sectors like Insurance and NBFC should also have such norm.

Though CRR, the amount of capital that banks park with the RBI, doesn't pay any interest to banks, RBI views it as a cushion against any liquidity crisis in the system. 

K C Chakrabarty

 
Reacting to the SBI chief statement , The Deputy Governor of RBI comes harshly  on him & said  that banks had to work in the regulatory environment of the country. 

 "If the SBI chairman is not able to do business as per our regulatory environment, he has to find some other place," RBI Deputy Governor K C Chakrabarty said in a sharp reaction to Chaudhuri's recent comment that CRR does not help anybody and it was unfairly put on banks.

Being an officer at such high position he should give good message to nation & also to whom which is the chairman of the India's Largest Public Sector Bank.