Not a good gesture

Sir, - Your Editorial `A pragmatic policy statement' (Oct. 24): The RBI decision to reduce the bank rate to boost economic sentiment is not a good gesture to senior citizens who solely depend on the FD interest having no pension benefits. Early this year, the RBI directive to offer extra interest for seniors from mid-May 2001 proved no immediate benefit for those who had made long-term deposits. With periodic reduction in bank interest and with the increase in the cost of living by 10 per cent annually, a large number of elders find the going tough. In the U.S., a surplus budget is always provided for the social security for the aged. At least, can not the Centre grant need-based interest for the seniors? I suggest the setting up of a financial corporation offering 12 to 15 per cent interest for them which will provide adequate financial security.

Arcot Easwaran,

Chennai

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