Bonanza for senior citizens
Senior citizens will be rewarded with a 20 per cent bonus on interest
paid on deposits with retrospective effect from January 1, 2010, Central
Bank sources said.
Citizens above 60 years will be entitled to this scheme for rupee
deposits in licensed banks. Banking experts said rewarding senior
citizens is a fine gesture but steps should also be taken to narrow the
margin between lending and deposit interests rates in the banking
sector, which is the highest in the region.
Central Bank sources said this is not an election ploy as queried by
some depositors but a move to recognise the contribution made by senior
citizens to the country. Sources said steps would be taken to reduce
interest rates on lending by banks which have failed to comply with the
directive of the Government.
The bonus scheme applies to existing or new individual/joint deposit
accounts of senior citizens or joint accounts with spouses, joint
deposit accounts of senior citizens with individual/s below 60
years(other than the spouse) which have been in operation before
01.01.2010. The bonus will be paid over and above the special schemes,
if any, offered by banks for senior citizens.
Banks have been advised to obtain a written undertaking from
recipients of bonus interest that if any payment is made in excess of
the eligible amount will be recovered from the deposit account without
prior notice. (LF)
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