The Hindu : An earnest appeal

Online edition of India's National Newspaper
Monday, Feb 25, 2002

Opinion

Opinion - Letters to the Editor

An earnest appeal

Sir, — It is learnt that the Reserve Bank is considering further reduction in interest rates. If this is true, it will consequently reduce interest on fixed deposits. Over the years, the periodic reduction in bank interest rates has correspondingly lowered interest on FDs to such a level that those who are entirely depending on the interest income thus generated, are unable to balance their budget, at a time when the cost of living is increasing by about 10 to 12 per cent annually.

This is particularly so for senior citizens, especially for those without pension benefits, having retired from private firms. It is by force of circumstances that thousands invested their hard-earned life savings in finance companies which have crashed.

It is an earnest appeal to the Finance Minister to do the needful and thereby provide adequate social security measures for the aged, as is being done in some Western countries, in particular the U.S., where they are leading a comfortable life without financial constraints.

It is strange that when many banks offer extra interest for senior citizens, there is no such provision in the post office monthly income scheme. Suggest this monetary benefit with a reasonable margin of interest, only for seniors.

Arcot Easwaran,
Chennai

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