15% interest to senior citizens
View(s):Bravo to the Business Times for its valiant effort to campaign against various unjust conditions imposed from time to time by the Central Bank (CB) in connection with the above matter.
Yet it seems some problems are lingering on/arising due to the new condition imposed by CB after the acceptance of the above term deposit from the senior citizens by the banks, in contradiction of earlier accepted practice on granting of loans against such term deposits.
I have an on-going POD facility from the Bank of Ceylon (BOC) Jaela branch since the 1980s against the term deposit. This deposit was transferred to the above scheme on 26th January 2015 under existing arrangement with the bank at 12 per cent p.a. At that time the condition of “NO-LOAN” was not in force and even thereafter when the above 15 per cent interest came into effect.
But the BOC refused to change it to 15 per cent and the reason adduced was that the CB had instructed them not to grant loans. I asked them as to why they did not inform me earlier when they changed the old deposits to 12 per cent. The BOC said that they were informed much later after the introduction of the 15 per cent interest rate.
Similarly I withdrew the deposit under the scheme when the Sampath Bank refused to grant me loan on 23rd March 2015.
They paid me interest from 26/1/15 to 6/3/15 at 12 per cent and from 6/3 to23/3/15 at 15 per cent.
The loan was required for an urgent purpose. Recently I underwent open heart bypass surgery. With half my total deposit tied up on the above scheme without loans, senior citizens like me cannot meet large medical bills and hospitalisation with this mere interest we receive and that too at the end of 12 months at the maturity. The banks say FDs outside the above scheme are entitled for the loans and wanted me to withdraw the million and transfer it to normal prevailing interest rates in the banks.
The CB’s unscrupulous act, imposing conditions after accepting deposits by banks unjustly prevented the availability of the above scheme to me.
I.P. Gomes
Ja-Ela