What is a regulator supposed to do?
Protect the end user, right? WRONG. Completely wrong.
Protect the manufacturer, the agents, the employees – and ensure the inefficiency in the system is expensive. And make sure that the price is paid for by the end user a.k.a customer or the aam aadmi…
If you were running a Geriatric care center YOU are surely doing a favor to the society in which you operate. Even if it is a money charging institution looking after old people is a herculean task, and few people can do it willingly.
Now a geriatric care center is different from an old people’s home. An old people’s home will just call you up and say ‘Mr. S you parent is unwell please take him/ her away’. A geriatric care home is more like a hospital and will take care of minor surgeries, will provide care for dementia, paralysis, stroke, depression, parkinsons, etc. It is thus a specialization even among old people’s homes and hospitals.
Now if you run such a hospital you should get some help from the government, right? Well, no. The government owned banks lend money at 15.5% p.a. because they treat the hospital business as a REAL ESTATE business.
Well what if I take money from my inmates? well no. You cannot take money from anybody – only banks can you see.
So my inmates (obviously 75+ in age) need a regular source of income – so they keep their money in a bank. The bank pays about 8% p.a. interest. Also banks are so tardy in their paper work that keeping track of TDS – deposit wise and quarterly is a challenge for a full fledged accountant!
The banking regulator thus assures that his constituents get money at pathetic rates – 3%, 5%, 8% – and can lend comfortably at 18% – 14.8% is obviously a cheap rate by bank standards!!
So a hospital for OLD people takes money from the same old people at 8% p.a. and lends it to the HOSPITAL where these people are treated. Of course the lending happens at 15%.
I am sure none of you want the names of the hospital? interesting no? esp dementia, etc.
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