BusinessThe budget proposal to pay 15 per cent special interest on fixed deposits of up to Rs 1.5 million held by senior citizens in commercial and specialized banks is being finally enforced, it was announced on Wednesday. The Business Times was in the forefront of the campaign urging the government to enforce this proposal first proposed in Budget 2015. The special interest scheme applies to those who are 60 years and above. Under this scheme the government pays the difference between the 15 per cent and the market standard interest rate offered by commercial banks. “As a result of this offer to senior citizens, the number of fixed deposits by senior citizens rose to 450,000 in 2016 from 91,000 in 2015,” the ministry said in a statement.

Source: Sunday Times February 15, 2017 10:05 UTC