15% interest finally for senior citizens
Here is good news for senior citizens. The Government has finally – after hemming and hawing over a November 2016 budget proposal offering a 15 per cent interest on deposits – agreed to its implementation. There is also an added bonus. The proposal will cover both finance companies and commercial banks; will apply to anyone above 55 years (earlier it was 60 years) and up to a maximum of Rs. 1.5 million (earlier Rs. 1 million). The Business Times has been repeatedly highlighting the need for the government to implement this proposal.
This was confirmed by Treasury Secretary R.H.S Samaratunge who told the paper that a circular will be issued before the end of the month to the Central Bank (CB) to issue a directive to finance companies (and commercial banks) to implement the proposal. He said clear guidelines would be issued to minimise any confusion. In the absence of clear instructions, commercial banks have been, this year, renewing deposits of senior citizens’ accounts that were placed at 15 per cent interest under earlier budget proposals.
The letter of instructions has been prepared and it will be sent to the CB before the end of this month, Dr. Samaratunge said. Thereafter the CB will need to issue a circular to the banking and finance sector with the date of implementation.