Banking in India.

Generally, the regulations in the Indian Banking Sector, have their origins, in practices which have their foundations, on financial principles, which have existed from a long time. But, let me express on the system of overdraft. I know a little, on how one gets an overdraft in India. I was considering the following scenario: What if I took an overdraft of Rs 80, on a fixed deposit of Rs 100. Suppose the interest on overdraft is 12%, and the interest on deposit, which accrues to the depositor, is 10%. Now, if the depositor pays 10% as the interest on the overdraft, and the further 2% which is charged by the bank as an added interest for the surcharge on the overdraft, is used by the bank, to help the overdraft amount to be recovered by the bank, at no cost either to bank, or to the person who has taken the overdraft amount. In other words, if the 2% is not used as interest, but as a means for the bank to recover the amount, which it has given as overdraft, to the person who has taken the overdraft, then how may it be perceived? The bank borrows at a certain rate, from the depositor, and lends money to the depositor at a certain rate. Why can not the lending rate, and the borrowing rate, of the bank be identical? If the borrowing rate and the lending rate, is the same, then there is no question of either the borrower making more profit, or the lender making more profit, while lending and borrowing. Hence, the income made by the person who lends, cannot be seen as interest, because the lending rate is universal, and income is not disproportionate, if one lends. After all, one borrows in a business to make income, so how do the funds which fund business grow, or in other words, if the funds to fund business do not grow, there will be no funds for the business. To come back to the overdraft scenario, if the 2% is used as I intimated, then the customer is helped, to recover the overdraft, and the bank is helped to technically recover the deposit.