Shiv Sena leader Priyanka Chaturvedi has urged finance minister Nirmala Sitharaman to give a special interest rate on fixed deposits for senior citizens and also to remove the cap on investments in postal savings scheme and public provident fund (PPF).
In a letter to the finance minister, the Shiv Sena lawmaker from Rajya Sabha said that low interest rates have hampered the savings of senior citizens and have left them with little room to plan for their future.
She added that the Coronavirus pandemic has put a lot of strain on their retirement funds and therefore their concerns need to be resolved by giving them relief in the budget.
“The Union Budget offers the government this opportunity to resolve these concerns and provide relief to the people of our country,” Ms Chaturvedi said in the letter.
“Currently, interest rates are extremely low considering the high inflation. Interest rates in fixed deposits over the years has come down from 12 per cent to five per cent, post offices savings have come down to around seven per cent with a cap of Rs 15 lakh on investments,” the letter said.
“In case of PPF, it has a cap of Rs 1.5 lakh only annually. Further, all of these barring the PPF are taxable,” she said, adding lowering of interest rates has made it difficult for senior citizens and retired employees to have sufficient income to run their households.
Ms Chaturvedi asked Ms Sitharaman to provide a special rate of interest on bank fixed deposits keeping the concerns of senior citizens and retired persons.
She also requested the finance minister to remove the cap on post office savings scheme and PPF to allow a steady source of secure income to senior citizens keeping in mind the rising cost of living.