, Columnist
India's Stealth Rate Cut
Paying postal-savings depositors less will tempt them to put their money in the bank instead.
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India just ushered in an interest-rate cut, via the backdoor.
Although paying postal-savings depositors slightly less for their cash may appear a minor tweak, the move could end up having a bigger salutary effect on bank balance sheets, and the country's nervous bond market, than the Reserve Bank of India's 125 basis-point reduction since early 2015.