treeviewBanks provide senior citizens with a variety of services, ranging from banking to taxation. The following are some of the benefits and privileges that senior citizens receive from banks:
Free At-Home Basic Banking Service: According to the Reserve Bank of India (RBI) mandate, banks must provide basic banking services free of charge at home to “Divyangjan,” differently-abled people, and citizens aged 70 and above.
According to Ashish Misra, COO of retail banking at Fincare Small Finance Bank, free at-home banking services provided by banks include cash withdrawal and deposit services, delivery of demand drafts, collection of know-your-customer (KYC) documents, submission of life certificates, collection of income tax 15G/H forms, and so on.
Misra went on to say that all banks have a specialized grievance redressal officer at their branch offices to deal with concerns involving the elderly.
Insurance Coverage: Banks such as IDFC and SBI offer free or low-cost personal accident insurance to older individuals who have savings accounts with them.
According to S. Anand, chief executive officer (CEO) and co-founder of PaySprint, a neo-bank, insurance premiums rise as people age, and it might be difficult to obtain insurance coverage. To assist older adults, “some banks have combined a personal accident insurance policy along with their savings account.”
Senior Citizen Savings Scheme (SCSS): Banks and post offices, such as Canara Bank and Union Bank of India, provide senior citizen savings programs (SCSSs). People aged 55 to 60 who have chosen a voluntary retirement plan (VRS) or superannuation, retired defense personnel aged 50 to 60, and other designated seniors can invest in SCSS.
The plan now provides a 7.6 percent interest rate with tax benefits under Section 80C.
Convenient Physical Branch Banking: The RBI requires all banks to set up a separate counter to serve the requirements of older folks. Senior adults can use these customized counters to bypass huge lines at banks.
According to Misra, all Indian banks automatically convert a person’s KYC-verified savings bank account to a senior citizen account based on the age provided on the KYC form. Certain institutions also provide complimentary checkbooks to senior folks.
Increased Fixed Deposit Interest Rates: Banks give seniors greater fixed deposit interest rates. For example, the Bank of Baroda (BoB) offers 6.6 percent to older persons on one-year fixed deposits under Rs 2 crore. Others have a rate of 6.1%. BoB boosted its retail deposit rates by 1% (100 basis points) across all tenors and quantities on November 14.