Purposeful Devaluation

sically collect deposits. This is a vital difference which was not adequately appreciated. It was also not realised that these agents perform a very valuable service in mobilising deposits from persons not at all familiar with banks. The Reserve Bank has at last evidently recognised these facets of the problem and has recently withdrawn its earlier restrictions on commissions paid to agents for collecting deposits. This reversal of policy is indeed welcome, but the fact that it came only in the face of criticism of the nationalised banks for the slow pace of deposit mobilisation once again highlights the ad hoc and arbitrary nature of decisionmaking.