RBI’s BP Kanungo committee proposes banking services for senior citizens, differently abled persons

The committee came across complaints from senior citizens about the rush in the month of November for submission of life certificates.

The BP Kanungo committee set up by the Reserve Bank of India (RBI) has proposed banking services for senior citizens and differently abled persons. Based on complaints to the Reserve Bank’s integrated ombudsman scheme, the Kanungo committee has noticed gaps at various levels of access to financial services, inhibiting the ease of carrying out transactions by senior citizens and differently abled persons.

According to the Population Census 2011, there were approximately 10.4 crore elderly persons in India in 2011. As per the report of the technical group on population projections for India and states 2011-2036, there were nearly 13.8 crore elderly persons in India in 2021. Of the elderly population, around 8 percent are confined to bed/home or wheelchair-bound.

The following recommendations are a part of the committee report released on June 5 that listed recommendations on several areas to improve customer service standards in regulated entities. The RBI had set up a six-member committee in May 2022, headed by Kanungo to examine and review customer services in regulated entities with an aim to protect the interests of customers.

Existing aids for senior citizens and differently abled persons

The RBI guidelines stipulate that the vulnerable sections of the population, such as senior citizens and differently abled persons are not discriminated against in terms of access to financial services. Additionally, certain special services and flexibilities are also required to be made available to them. These include instructions for enhanced ease and convenience, such as provisions of dedicated counters at branches, ease of submitting life certificates (LCs) in pension accounts, additional facilities to visually challenged customers, option for doorstep banking and automatic conversion of a fully KYC compliant account into a ‘Senior Citizen Account’ based on the date of birth available in bank’s records.

The committee had observed during their interaction with the customers of regulated entities that often senior citizens and differently abled persons are not aware of the above-mentioned facilities or whom to approach for the facilities.

In order to bring improvement in the ease of availing the services by this group of customers, the committee has recommended the following guidelines.

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Provide a dedicated call centre

The regulated entities should provide a dedicated telephone number where the senior citizens can call for clarifications, queries and/or guidance regarding the service they are eligible to avail or want to avail.

This helpline number should be displayed at all the branches and websites of the regulated entities and also be printed on the passbook, account statement, etc. issued to the senior citizen and disabled persons.

Relatives can pay upfront for door-step banking service

Some senior citizens are reluctant to pay for doorstep banking services. However, their family members settled elsewhere or in other cities are willing to make such payments on their behalf. So, registered entities may provide an option for the relatives of the senior citizens to pay upfront for the doorstep services as well as other such conveniences to be availed by their elders.

“Needed a dedicated welfare officer(s) to visit home-bound seniors and differently abled persons from the regulated entity,” says Priyesh Sampat, Head Strategic Solutions, Sampat Investments. He adds that the said welfare officer(s) can be retired employees of the regulated entity who are well-versed in the banking process and systems. The ones who would volunteer to help for a stipend from the regulated entity.

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Allow to submit life certificate at any branch of the bank

The committee came across complaints from senior citizens about the rush in the month of November for the submission of life certificates (LCs). The committee recommends that pensioners should be able to submit LCs at any branch of the bank in which they maintain their pension account. Moreover, they should be allowed to submit LCs in any month of their choice to avoid a rush in a particular month. The senior citizens can submit subsequent LCs in the same month at annual intervals.

“There is a need for a dedicated counter for visiting senior citizens for banking services and submitting of LCs,” says Sampat. He adds that the separate counter should be extended to differently abled persons as well in the bank branches.