The Hindu : National : Major relief to senior citizens

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Friday, Jul 09, 2004

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Major relief to senior citizens

Pensioners in an animated discussion on the Marina beach in Chennai on Thursday. The Senior Citizens Savings Scheme proposed in the Union Budget has come as a major relief to pensioners. -- Photo: S.R. Raghunathan

NEW DELHI, JULY 8. In a major relief to senior citizens, the Government today proposed to introduce a new scheme, called the Senior Citizens Savings Scheme, offering an interest rate of nine per cent per annum, which is above the market determined rate.

Presenting the 2004-05 Budget in the Lok Sabha, Finance Minister P. Chidambaram also proposed to continue the Government Savings Bond, carrying an interest rate of eight per cent per annum, while recognising the need for an instrument bearing a slightly higher rate of interest to provide a risk-free avenue to all citizens to save for a longer term.

He also did not make any change in the existing rates of interest on small savings instruments.

Consequently, PPF, GPF and Special Deposit Scheme will attract eight per cent interest this year.

The Varishtha Pension Bima Yojana may no longer be necessary since the new savings scheme will cover the senior citizens adequately, Mr. Chidambaram said. — PTI

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