Banks revisit doorstep banking policies for senior citizens amidst social distancing norms

Surabhi Updated - December 06, 2021 at 12:40 PM.

RBI wants them to comply by April 30

More States are likely to follow suit and dole out benefits

Amidst social distancing norms and the national lockdown in the coronavirus pandemic, banks are revisiting their doorstep banking policies.

While some lenders have discontinued services, others are going the extra mile and not only doing cash delivery but also bringing in vegetables and medicines for senior citizen customers. Many banks are also operating mobile ATMs to ensure that customers can easily access cash without having to crowd at ATMs and branches.

During the current lockdown, lenders like State Bank of India (SBI) and HDFC Bank are continuing doorstep banking services like cash delivery.

“SBI team is setting new standards to serve customers with care and compassion during these difficult times. Our Salt Lake branch ensured door-step delivery of cash…,” SBI said in a recent tweet.

HDFC Bank is also providing doorstep banking to senior citizens with facilities like cash pick up and drop as well as cheque pickups.

Paul Thomas, Managing Director and CEO of ESAF Small Finance Bank said the lender is working closely with senior citizen customers. “About 28 per cent of out deposits are from senior citizens, we are providing door step services and also delivering vegetables and medicines if required,” he told BusinessLine.

Significantly, the Reserve Bank of India (RBI) had recently advised banks to ensure that certain basic banking services are offered to senior citizens of over 70 years and differently abled persons at the doorstep.

Although banks were advised to implement the instructions by December 31, 2017, it has been observed that such services are yet to be offered by banks or were restricted to select branches, the RBI had noted, adding that they must comply by April 30.

“Banks should develop a Board approved framework for determining the nature of branches and centres where these services will be provided mandatorily and those where it will be provided on a best effort basis and make the policy public. The list of branches offering such doorstep banking services shall be displayed and updated on the bank’s website regularly,” the RBI said in a recent circular.

However, some banks are maintaining social distancing and have withdrawn doorstep banking facilities for now.

“Senior citizens are more vulnerable to Covid-19 and as a policy we feel it is better to not provide doorstep banking as of now. Many of our senior citizen customers have also said they would prefer to go to the bank branch at present,” said a private sector lender.

Many banks have also launched mobile ATM facilities in select cities to ensure that customers have easy access to cash.

Meanwhile, cash and payments solutions company CMS Info Systems has launched a free Cash2home facility for doorstep cash delivery service to help senior citizens and disabled get cash safely at home with partner banks.

Published on April 16, 2020 09:16