All India Bank Employees Association (AIBEA) has demanded an increase in the exemption of tax on interest earned on bank deposits to Rs 25,000 from Rs 10,000 at present from the government in its maiden Budget next month. ‘Government policy should be at promoting savings and investments by attracting funds in public sector banks. Hence the government should persuade public sector banks to increase the interest rate on bank savings accounts to around 5.05 per cent’, said an AIBEA office bearer. AIBEA has asked that floating of asset reconstruction companies as a tool to reduce NPAs should be discouraged, and these NPAs should be actually recovered from corporate defaulters. AIBEA has made the suggestion to Union Finance Minister Arun Jaitley before the Union Budget.
