Sunday, April 19, 2015

Letter to PM from MV Ruparelia on Fixed Deposits

M.V.Ruparelia, Chief Patron, All India Senior Citizens Confederation (AISCCON),A503 Rashmi Utsav,  Near Jangid Estate & Vijay Park, Mira Road (East),  Dist. Thane.401 107.  M. 09821732855.  E/Mail:

To                                                                                                                                Date: 14-4-15.

Shri Narendra Modiji, Prime Minister of India.

1.      We are thankful to you for your personal concern for Elders of the Country in your communication dt 31-3-15. We would like to bring out one of our grievances for very early action.

2.      Government of India with approval of Cabinet issued National Policy, 99 for welfare of Senior Citizens giving Mandate & Policy Statement to all Public & Private Stake Holders to take effective steps to improve the quality of life of all Elders, strengthen their legitimate place in society and help them to live their last spell of life with purpose, dignity and peace (Paras 12 to 29). Many of the provisions of this Policy are not yet implemented even after 17 years and revised Policy is not finalized even after years together. Para 29 of Policy, 99 lays down that these Elder contributors should feel assured that the payments at the end of stipulated period are attractive enough to take care of the likely erosion in purchasing power due to erosion.

3.      Many Elders depend for livelihood on interest on their meager savings due to economic position at the time of their retirement. In February 2013, State Bank of India has reduced 0.25 points from additional interest of 0.50 per cent paid to senior citizens on fixed deposits to reduce the cost of funds of banks, though Reserve Bank and Finance Ministry have given in writing that they have not issued any orders to reduce rates for Senior Citizens. Reserve Bank of India vide their Master circular DBOD no. Dir.BC.1/13-03.00/2012-13 dt 2-7-12 had authorized all Banks to formulate with approval of their Board of Directors fixed Deposit Schemes for senior Citizens, offering higher and fixed rates of interest as compared to normal deposits of other citizens. Reserve Bank and all Public Sector Undertakings including Banks are the stake holders of this Policy and apex authority of Government to sponsor and support programmes of the Government. State Bank of India is the biggest and most Profit Earning Bank and has a moral & Corporate Social Responsibility, having laid down obligation towards senior citizens of the Country. Looking to their profits, they should give very higher and fixed rate of interest to Senior Citizens to take care of the likely erosion in purchasing power due to ever increasing inflation.

4.     According to directives in National Policy, 99, each Ministry was required to bring various provisions of National Policy, 99 to the notice of all Officers and Staff of their Ministry. Finance Ministry has not brought out Mandate & Policy Statement (Para Paras 12 to 29) to the notice of Reserve Bank and all other Government & Non-government Banks and Departments under Ministry of Finance, so that all departments of Finance Ministry act on these provisions. On reference to Reserve Bank on this aspect, Reserve Bank has stated in para 3 of their letter no. DBOD no.DIR.5721/13.01.01/2013-14 dt 26-9-13 that they have not received the Government Notification for these provisions. In absence of proper directives from Finance Ministry, other Banks also give only ½ % extra instead of higher and fixed rates of interest directed by Reserve Bank. Such extra ½ % is a mockery of your Elders. We shall be obliged, if you get proper directives issued by Finance Ministry on priority basis to all Banks, including State Bank to give higher and fixed rates of interest as directed by Reserve Bank.All Ministries may also be advised to take effective steps to improve the quality of life of all Elders, strengthen their legitimate place in society and help them to live their last spell of life with purpose, dignity and peace.

Thanking You,

Yours Sincerely,



Sunday, April 12, 2015

Wednesday, April 1, 2015

Small savings rates for FY 2015-16 announced

Small savings rates for FY 2015-16 announced
The government today announced key small savings rates for the new  fiscal, 2015-16, that starts from tomorrow.
Public Provident Fund: 8.7 percent (unchanged from FY15)
Kisan Vikas Patra: 8.7 percent (unchanged)
10 year National Savings Certificate: 8.8 percent (unchanged)
5 year NSC: 8.5 percent (unchanged)
5 year Monthly Income Scheme: 8.4 percent (unchanged)
5 year time deposit: 8.5 percent (unchanged)
5 year recurring deposit: 8.4 percent (unchanged)
1-3 year time deposits: 8.4 percent (unchanged)
Savings deposit - 4 percent (unchanged)
The government announced changes in two schemes:
5 year Senior Citizen Saving Scheme: increase from 9.2 percent to 9.3 percent
Sukanya Samriddhi Account Scheme: increase from 9.1 percent to 9.2 percent