The Reserve Bank of India (RBI) has been lowering lending rates in the last year, bringing about a total cut of 150 basis points. Correspondingly, the rate of interest on bank deposits has dropped. Senior citizens who subsist on their investment in bank fixed deposits are worried. The RBI governor might have declared a war against inflation. However, it is the helpless senior citizens belonging to the middle class who have become the casualties. The Centre, headed by a Prime Minister who seems to be sympathetic towards the elderly people, should advise the Finance Minister to ensure that deposits of senior citizens, made out of retirement benefits such as Provident Fund and gratuity, remain steady at 10 per cent.
M.A. Krishna Prasad,
Vrindavan
