Low Interest Rates On Deposits (Business & Economy)

When Finance Ministry announced that all our deposits in the banks shall earn less rate of interest than before, this statement has stunned the people. They are astonished by decision. Infact the interest rates on savings account is already only 3.5% and if you knock off 30% out of it, your net interest income remains just 2.45%.
In case your interest income is more than Rs. 5000, then the government shall deduct 10% tax at source. Anyway, if you want to avoid giving that much of amount, you can use Form 15. This form states that your income is below the taxable income limit of Rs. One lakh. If you fill up this form then the government shall not deduct 10% tax at source.
This is truly an absurd decision taken at the time when the people of India are already overburdened with poverty and unemployment. All those unemployed and retired people, who merely depending on the interest income, will be most affected with the new law introduced.
Just imagine, what will happen to the economy of the nation, when everybody will retreat back from depositing their money in government banks. The government, who is earning huge profits on the deposits of the people in the banks would be ruined, when the people would refuse to deposit their money in the banks. The people would consider it better to invest their hard earned money in shares and mutual funds of private sector companies than to deposit in government banks.
The government would ruin itself by ruining others. Infact, it is not good to blame the entire government for the wrong decision, but the truth is that the one wrong decision can ruin the economic condition of the entire nation.
The government must find out the consequences of this decision.
The Finance ministry must change his decision and introduce new laws to raise the interest rate with no tax liability on the poor people. The ministry can very well do so, as the government is earning huge profits with the hard earned money of the Indian people. By increasing the interest rates the government can reduce poverty to a great extent, and it would be truly a step in the right direction.