“Interest” in senior citizens is waning
I refer to the letter appearing in the Sunday Times of November 17, 2018 under the headline “Remember the promise you made to the pensioners” where it appears that the Finance Minister’s promise to increase the pensions to the government pensioners have not been adhered to.
Now that the elections are over, and as the Finance Minister has resigned, the chances of receiving the increased pension may be in jeopardy. The pensioners may have to keep their fingers crossed till a new government is formed. Similarly, the employees who retired from the mercantile sector, only with the lump sum provident fund, are also in serious trouble. Some of the retired mercantile employees who deposited their EPF money in finance companies have lost all their deposits due to the companies crashing.
The prudent lot who deposited their monies in state banks too are in trouble due to a reduction of interest rates. A deposit up to Rs. 1.5 million by senior citizens, continue to receive 15 per cent interest, but the interest on deposits over and above this amount, which may invariably be in the region of another Rs. 1.5 million (hypothetically), has been drastically reduced to approximately 9 per cent. Thus senior citizens are finding it difficult to meet their daily needs. The higher interest payment on Rs.1.5 million amounts to only Rs. 18,750 per month together with the interest on the balance Rs.1.5 million amounts to only Rs.11,250. Thus the total interest, amounts to only Rs. 30,000 which is not even sufficient to meet their medical bills.
Almost all the state banks and even most of the private banks boast of an annual net profit of over a couple of billions of rupees and their fight for recognition in business magazines. Congratulations to all of them. I am sure the banks could assist senior citizens by extending the 15 per cent to an additional Rs. 1.5 million. I am aware of a private bank (Seylan) which extends some assistance to their senior customers by way of reimbursing the cost of cataract lenses, surgery and annual payment against medical bills depending on their age and balances in their Savings Account/Foreign currency accounts. Similarly other banks too should embrace the Senior Citizens. The present interest on foreign currency savings and fixed deposits is paltry. It should be revised at least for senior citizens in a realistic manner.
According to press reports, salaries of government employees have doubled and the private sector too has been advised to increase the salaries of their employees. How far it is being done is questionable. Similarly retired senior citizens too should be comforted with or without the concurrence of the government – may be the government could extend tax benefits on the amounts spent on senior citizens by the banks.
K. Balendra Colombo.