Chaos, confusion continue in 15% interest drama
Chaos and confusion prevailed for the third week running in the 15 per cent special interest rate scheme for deposits of senior Sri Lankan citizens, this time when banks received instructions on its implementation.
Despite the Central Bank and the Sri Lanka Banks Association (SLBA) issuing guidelines, there was still ambiguity over this issue. The interpretation of the Central Bank (CB) announcement last week (February 25) appeared to have foxed many banks, whose officers gave confusing responses to customers.
The Business Times fielded at least 50 calls from anxious and disappointed depositors, each having a different story to tell on how they were told they are ineligible to apply.
“When I went to my bank I was told that I can’t open an account as I had more than Rs. 2 million in all banks including deposits in savings accounts,” Mr. Gamage, a senior citizen told the Business Times.
Similarly a Mr. Fernando called in to clarify if this scheme is eligible to those above 60 years (which he was in two days time) and if he got his EPF money (Rs. 3 million), whether he could open accounts under this scheme as it says it’s on a deposit not exceeding Rs.1 million.
Retired tourism professional Renton de Alwis, commenting on Facebook, said people were made to believe that banks would give this facility up to Rs. 1 million. “Now we are told that it is only for those who have one million or less only. This violates the earlier 12 per cent given upto Rs.2.5 million regardless of FD value limits,” he said.
A retired Brigadier said this was ‘downright’ cheating the people. On Friday as frustration grew among elder citizens some of whom expressed fury to bank staff, the SLBA in a second public notice clarifying some issues said that those who had opened FDs of Rs. 1 million and below under the earlier 12 per cent interest rate can convert this to a fresh account at the new 15 per cent rate without incurring any penalty.
Bankers were even more confused as many senior citizens walked into banks and filed complaints of an unfair system.
“Those who recently opened accounts under the 12 per cent interest scheme proposed in former President Mahinda Rajapaksa’s budget presented in October 2014 want to transfer their deposit to the new 15 per cent rate, but there’s ambiguity on whether the rationale (to grant a concession for poor seniors) will be fulfilled, if they own other FDs worth more than Rs. 1 million as this rate is for those owning an aggregate of less than Rs 1 million FD,” a banker told the Business Times.
Under CB guidelines the 15 per cent interest is applicable to senior citizens who have deposits totalling less than Rs. 1 million in all banks.
| Timeline Throughout 2014: Business Times and Sunday Times publish many letters urging an increase in the interest rate for senior citizens. One letter says to increase rates to 12 per cent from around 7 per cent. |