Set viable base deposit rate for elderly, says NITI Aayog

PTI

New Delhi, February 19

The government think tank — NITI Aayog — has pitched for tax reforms, mandatory saving plan, and housing plan for elderly in India, as the number of senior citizens is projected to reach 19.5 per cent of the country's population by 2050.

‘Reassess reverse mortgage rules’

• The Aayog suggested that the govt should reassess the reverse mortgage mechanism to increase liquidity for seniors
• Tax and GST reforms on senior care products (needed) to increase the ease of adoption and safeguard the elderly population from the financial burden

In a report titled ‘Senior Care Reforms in India — Reimagining the Senior Care Paradigm’, NITI Aayog said a national portal for care must be developed for senior citizens to provide easy access of services to them.

“Since the social security framework in India is limited, most seniors depend on the income generated from their savings. Variable interest rates result in the erosion of their income, sometimes even below sustenance levels.

“Therefore, a regulatory mechanism is required to set a viable base rate for the interest accrued on senior citizen deposits,” the report said.

The report emphasised that giving a further concession to older women would contribute to their financial well-being.

The elderly in India currently comprise a little over 10 per cent of the population, translating to about 104 million. Their count is projected to reach 19.5 per cent of the total population by 2050.

The report also suggested that the government should reassess the reverse mortgage mechanism to increase liquidity for seniors and by making necessary amendments to the current reverse mortgage rules.

“Tax and GST reforms on senior care products (needed) to increase the ease of adoption and safeguard the elderly population from the financial burden,” the Aayog said.

Population ageing is a global phenomenon, and the number of people over 60 years of age has been rising rapidly across the world.

The report also called for earmarking CSR funds as a contribution to national funds for care provided to the non-affording category of the elderly in their facilities.

It also stressed on developing partnerships with the private sector through various PPP models to encourage private medical care at discounted prices to senior persons across the medical care cycle, from consultation to diagnostics to treatment.

More than 75 per cent of elderly people in India suffer from chronic diseases and these figures indicate the potential of the home-based care market in India.

As per the report, the size of the home healthcare market in India was estimated at Rs 50,840 crore in 2020 and it is projected to reach Rs 1.74 lakh crore by 2027.

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