INDIA: Higher Rate of Interest on Seniors' Deposits

KOLKATA (The Statesman), May 27, 2001: Very recently nationalised banks have begun allowing 0.5 per cent increase in the rate of interest over the normal rate for senior citizens, points out P.K. Chaudhuri. It may be recalled that several letters have been published in the newspaper when rate of interest on small savings was reduced to 9.5 per cent from 11 per cent. But the authorities did not give any thought over it. The correspondent fails to understand how the nationalised banks could now offer this special offer to senior citizens. Will the authorities allow special rates as allowed by banks on Post Office MIS account, asks Mr. Chaudhuri.