PM's New Year announcement aims to provide social security to senior citizens: Dattatreya

Union Minister of State for Labour and Employment Bandaru Dattatreya on Sunday said the scheme launched by Prime Minister Narendra Modi on New Year's eve aims to take care of senior citizens of the nation by providing social security.

"I came here for the inauguration of diary of 2017. By two policies, Prime Minister Narendra Modi tried to unite, one is surgical strike, second is demonetisation," he said.

"The announcement made by Prime Minister Modi last night and the scheme especially for senior citizens would provide social security. All the employees at least by the time of retirement must have a proper house to live and I request all to support the new initiatives by the government," he added.

The minister attended the Telangana Employee Union Programme held in Hyderabad.

In order to protect the senior citizens from any decline in interest rates, Prime Minister Modi yesterday said they will get a fixed eight per cent return on 10-year bank deposits of up to Rs 7.5 lakh.

Senior citizens (60 years and above) will get monthly interest under this scheme, Prime Minister Modi said in his address to the nation on the eve of New Year.

"We are initiating a scheme for senior citizens. Banks often reduce their deposit rates when they receive a large volume of money. This should not adversely impact senior citizens. Under the scheme, senior citizens will receive a fixed interest rate of eight per cent for a period of 10 years, on deposits up to Rs 7.5 lakh. The interest will be paid monthly," Prime Minister Modi said.