A working group set up by the Reserve Bank of India (RBI) has recommended cross-subsidising of basic banking services to individuals and salvage the unrecovered costs through higher charges to corporates.
Nothing wrong at all for a business to cross subsidise. They do it all the time. In fact, you can say, businesses love to 'subsidize' shareholders, by extracting more price from those customers who are willing to pay more. But the question is, whether the direction should come from a central bank. If it increases the cost for corporates, would it not be passed over to their customers? So who really pays for unrecovered costs?
No comments:
Post a Comment