Hi Friends

I have started an appeal through Change.org regarding the Senior
Citizens Saving Scheme. The new scheme proposed by the PM smacks of
giving the go by to the existing schemes.

Please support this appeal by using the following link.

https://www.change.org/p/finance-minister-senior-citizen-scheme-2004-of-rbi?recruiter=641514350&utm_source=share_petition&utm_medium=email&utm_campaign=share_email_responsive

The gist of my appeal is here:

In Panchatantra, Hiranyaka, the rat had the strength to jump a great
height to get at the food stored by the hermit. The strength and
confidence was becuase of the hoarded back at his hole.

A nice independant income goes a long way in making the life of a
senior citizen tolerable; not having to depend upon others for his
needs. Old people who have no means suffer, if not physically but
mentally for having to look to others - feel so small when asking for
something even from the son.

When people retired or got voluntary retirement they collected tidy
sums. The next problem was how best to utilize that money to ensure a
regular income. Banks were offering a low rate of interest which was
not at all attractive.

Enter the villains - many of the old people with money were convinced
to part with their money offering huge returns, so called ponzi
schemes, and most lost their savings.

It is in this connection, in 2004 Reserve Bank of India introduced the
Senior Citizen Saving Scheme where senior citizens were allowed to
deposit their funds, up to a maximum of 15 lakhs and an interest of
9.3 per cent for a period of five years extendable for another three
years. The interest rates were reduced to 9.0 and then to 8.6 percent
during the 2016 budget.

However PM Mr Modi has recently announced a new and novel scheme
supposed to be favouring the senior citizens in which an investment of
Rs 7.5 lakhs for a period of 10 years and an interest of 8 per cent
payable monthly.

It now raises a doubt about the existing scheme. With the announcement
of the supposedly new scheme does the Government proposes to do away
with the existing scheme? This agrees with the current trend of
reducing government spending. The new scheme is in no way superior to
the existing one which allows a greater deposit and a higher interest
rate. The new scheme is not only a disservice to the Senior Citizens
it only saves the government some small value. The main and hidden
reason behind the announcement seems to pave way for the scrapping of
the existing scheme and thereby reduce the government's burden.

Most of the senior citizens have worked for the country one way or
another, many have retired from government service and their
contribution cannot be overlooked. It is the duty of the government to
ensure that these people spend their evening years in comfort and
peace without having to depend solely upon their children. As
mentioned above most old people without means feel bad about asking
their own children for money for meeting their small needs.

Government should take care of its older citizens and not consider
them as a burden. In the interest of the older citizens many of whom
have contributed to the development of the country as a whole the
Government should do the following:

1. Government should contribute to the welfare of its older citizens.

2. The existing senior citizens savings scheme with the 15 lakhs top
limit should be continued with following modifications.

3. The period of investment should be initially 5 years renewable
every 5 years.

4. The scheme must be brought as a welfare scheme.

5. The interest rate should be maintained as 9 per cent per annum
payable quarterly.

6. As an alternative, the scheme should be managed by the Life
Insurance Corporation. They already have a pension scheme which
returns a monthly income of Rs 2000. This is a life time service for
senior citizens under which the deposit is Rs 2.76 lakhs which is
returned to the nominees or legal heirs on the death of the insured.
The return works out to approximately 8.5 per cent.

The Prime Minister and the Finance Minister who are also senior
citizens with better luck than the ordinary senior citizen should make
the old people happy.

--
Thanks to those who respond to this which is of great impact to the
lives of senior citizens

Sundararaja

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