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Reduction in savings rates might encourage chit funds again, cautions Mamata

The West Bengal CM also criticised the Union government’s decision to elimination subsidy on LPG by March 2018.

india Updated: Aug 01, 2017 17:48 IST
HT Correspondent
HT Correspondent
Hindustan Times, Kolkata
Mamata Banerjee,Trinamool Congress,Chit fund scam
West Bengal chief minister Mamata Banerjee addresses the media at the airport in Kolkata on Wednesday.(PTI File Photo)

With SBI slashing interest rate on saving deposits, West Bengal chief minister cautioned on Tuesday that the constant reduction in savings rates by banks might encourage chit fund schemes to resurface and loot money of people.

Banerjee’s comments come at a time when a number of top Trinamool Congress leaders are facing probe by Central Bureau of Investigation (CBI) and Enforcement (Directorate) for their alleged involvement in chit fund scams like Saradha and Rose Valley.

“If the banks continue to reduce their interest rates like this where will the common and poor people park their hard-earned money. Will not they be encouraged to deposit their money in chit funds which might surface again taking advantage of them,” Banerjee said while addressing a party rally at Choopra in North Dinajpur district.

State Bank of India (SBI) on Monday slashed interest rate of saving deposits which is likely to impact over 90 per cent of its millions of small savings account holders.

BJP national secretary Rahul Sinha ridiculed Banerjee’s warning saying it is yet another dichotomy on part of chief minister. “After her party leaders encourage chit funds, she is now resorting to such lame excuses for mushrooming of chit funds,” he said.

Meanwhile, Banerjee criticised the Union government’s decision to elimination subsidy on LPG by March 2018 by hiking prices by Rs 4 per cylinder every month .

“The current Union government does not really care about the common people and what they care about is money. How will people survive if they are subjected to such economic attacks one after another,” chief minister said.

Banerjee also charged the BJP of creating tension in different pockets of West Bengal with “help from outside”.

“Some leaders from other states are coming to West Bengal and trying to create tension in the state. But they should not forget that those who try to stoke fire often become victims of it. We will resist such attempts to create tension at any cost,” she said.

First Published: Aug 01, 2017 17:47 IST