15% special interest rate soon at finance companies
View(s):More than three months after the budget proposal, guidelines on the 15 per cent interest rate on deposits up to Rs.1.5 million for senior citizens will be sent out to finance companies this week, Central Bank (CB) Governor Arjuna Mahendran said. ”We just now (Thursday) received the circular (on this budget decision) and will send it out in the next few days,” he told the Business Times. In his November 20 budget speech, Finance Minister Ravi Karunanayake, said the facility applicable to those aged over 55 years will be granted through finance companies where an interest subsidy of 1.5 per cent will be granted by the Government.
Over the past few weeks, there has been a degree of confusion in the banking sector as some commercial banks told their senior citizen customers, when the latter inquired, that they were yet to get instructions from the CB. While not being very clear, such a response also indicated that the senior citizens special interest rates, which last year was applicable to commercial banks, is likely to be offered once again through banks.