In his address to the nation on New Year’s Eve, Prime Minister Narendra Modi was not only made to announce old schemes as ‘new’ but the PMO, which would have vetted his speech and provided inputs, also made him mouth sops for senior citizens which actually are not sops but reduce existing benefits.





The Prime Minister seemed to suggest in his address that senior citizens would get an assured interest of 8% on deposits up to ₹7.5 lakhs locked in or fixed for 10 years.





Instead of placating the senior citizens, this appears to have incensed them because what the PM said amounted to an infringement on the existing scheme.





Senior Citizen Saving Scheme in Post Offices and SBI allows people above 60 years of age to deposit ₹15 lakhs for 5 year-lock-in period to earn interest @ 8.6% per annum ( It used to be 9% earlier) with interest payable quarterly which earns them roughly ₹10,000 a month.





The PM has just reduced the ceiling of deposit to half to ₹7.5 lakhs and also the interest to 8% and presented it as a progressive step for the benefit of senior citizens.