- Maharashtra government has decided to form a non-banking financial services institution to utilise the surplus money with state-run corporations in form of bank deposits.
- The total amount invested by 57 corporations is Rs 40,819 crore in form of bank deposits.
- Banks give them interest of about 5 to 5.5 per cent.
- It is not the job of government-owned corporations to sit on people’s money in such a manner.
- People’s money should be utilised for public good and accumulating funds in such a manner is not proper.
- Instead of banks, the corporations can invest the funds with the NBFS Institution and get the interest of their savings.
- If the amount is transferred to the NBFS, the government will not have to pay high interest rates to banks on loans and the surplus money of corporations will be used to meet urgent needs.
Source:PTI MR NRB ANU RYS