Banks have to automatically convert fully KYC compliant account into 'senior citizen account' on the basis of date of birth available with bank records.
With digital banking on the rise, nowadays not many bank savings account holders visit bank branches. However, not many senior citizens may be well versed with the technology and may still prefer making a visit to the bank branch for their banking needs. RBI had asked all the banks to put certain essential things in place for the benefit of the senor citizens and also for the differently-abled including visually impaired persons.
Most banks have a separate bank account for senior citizens with host of features for them for ease of operation of the savings bank account and optimum returns on their funds. Also, banks have to automatically convert fully KYC compliant account into ‘senior citizen account’ on the basis of date of birth available with bank records. For those who are above 70 years, there certain basic banking transactions that they may utilise even from home.
As a senior citizen, one may submit the KYC documents and Life Certificate to the bank sitting at home. The bank may charge for the service, depending on their Board approved policy, however, banks have also been asked to provide certain other facilities to senior citizens free of charge.
In view of the difficulties faced by senior citizens of more than 70 years of age and differently-abled or infirm persons (having medically certified chronic illness or disability) including those who are visually impaired, banks are advised to make concerted effort to provide basic banking facilities, such as pick up of cash and instruments against receipt, delivery of cash against withdrawal from account, delivery of demand drafts, submission of Know Your Customer (KYC) documents and Life certificate at the residence of such account holders, the banks have been asked by the RBI to provide doorstep banking to them.
Seniors visit to branch
Still, if a pensioner needs to visit the branch, he or she may even submit the physical Life Certificate form at any branch of the pension paying bank. The banks have been asked by the RBI that they should ensure that when a Life Certificate is submitted in any branch, including a non-home branch, of the pension paying bank, the same is updated and uploaded promptly in Core Banking Solution (CBS) by the receiving branch itself, to avoid any delay in credit of pension.
Banks are advised to provide a clearly identifiable dedicated counter or a counter which provides priority to senior citizens and people who are differently-abled including visually impaired persons.
At times, the seniors send someone else to collect a cheque book from the bank branch. Banks shall not insist on physical presence of any customer including senior citizens and differently-abled persons for getting cheque books. Further, banks are advised to provide minimum 25 cheque leaves every year, if requested, in savings bank account, free of charge.
Further, it had been clarified by the RBI that providing such facility in BSBDA ( zero balance account) will not render the account to be classified as non-BSBDA.