BENGALURU: Union Finance Minister Arun Jaitley recently raised fingers on the high returns on saving deposits as a key reason behind costly bank borrowing that is hurting private investment and growth in the broader economy. Speaking after releasing a commemorative postage stamp on 140 years of existence of BSE, he said, India must seize every economic opportunity as the country would need massive investment over next few years.

Commenting over the “peculiar characteristics” of high percentage of domestic savings, he said, it makes the economy sluggish. Noting the importance of economic activity the Union Minister stated that all the financial activity is investment which is going to come from where resources are available – reports The Indian Express.

While the Reserve Bank of India has cut down its main lending rate by as much as 125 basis points since January last year, the government has also reduced the rates on small savings. The central government has linked rates of small saving deposits to market yield of government bonds. But this has not changed the policy of banks as they have reduced loan rates by roughly 65 basis points.

Addressing the people at the event was BSE Chairman Sudhakar Rao who also sighted his vision; he said that BSE is now ready to launch its commodities’ derivatives business. He stated that, BSE is committed to establish an international stock exchange and international clearing corporation in GIFT city, Gujarat. The world’s largest bourse by the number of companies listed, BSE is already working on an in-principle approval from market regulator SEBI for launch of an initial public offering – reports Business Line, The Hindu.

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