In October 2017, RBI in its Statement on development and regulatory policy noted (released along with monetary policy):
8. Banking Facility for Senior Citizens and Differently abled Persons
It has been reported that banks are discouraging or turning away senior citizens and differently abled persons from availing banking facilities in branches. Notwithstanding the need to push digital transactions and use of ATMs, it is imperative to be sensitive to the requirements of senior citizens and differently abled persons. It has been decided to instruct banks to put in place explicit mechanisms for meeting the needs of such persons so that they do not feel marginalised. Ombudsmen will also be advised to pay heed to complaints in this context. Necessary instructions in this regard will be issued by end-October 2017.
So, in this digital madness suiting the young and efficient, banks are making these choices. Amazing how every person in this country is seen as dishonest till he is totally digitalised.
Having said this, one is really surprised to see some banks actually doing this. But trust humanity to do anything these days. I mean one still can’t figure why should a regulator have to step in for such basic things. Have Indian banks totally lost it?
Anyways, based on above RBI released a notice asking banks to take steps to reach out to senior citizens and differently abled people. It includes measures like accepting forms physically, cheque book facility, dedicated counters for senior citizens and soon. The last step is:
(g) Door Step Banking
We have issued instructions on Doorstep Banking vide circular DBOD.No.BL.BC.59/22.01.010/2006-2007 dated February 21, 2007 under Section 23 of Banking Regulation Act, 1949. However, 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 premises/ residence of such customers.
Amazing again. How little we learn from lessons of past practices in banking! This is perhaps unique to India where despite a rich financial and banking history, we just pay no heed to the lessons. Syndicate Bank had in late 1920s showed the utility of door to door banking but it seems nothing was learnt. The scheme was mainly for mobilizing pigmy desposits but showed how banks could connect with customers in a big way.
Infact door to door banking goes a long way here but earlier it was manly to give credit and collect the proceeds. These were all called as loan sharks and quite a few Hindi and regional movies show them. But Syndicate Bank turned it towards deposits which was seen as really positive as it “nudged” people towards savings and then borrowing against the same.
Infact, I learnt from series of circulars mentioned in the 2017 circular that RBI restricted door step banking in 1983. So, instead of taking positives from the scheme one just limited it. Then in 2005, RBI lifted some restrictions for government departments and the further guidelines were issued to streamline the process in 2007.
All in all, as we keep digitally pushing people and glorify tech leaders who are just destroying jobs, there is realization that age old practices still have relevance. Earlier door step banking was used for one and all and now RBI is suggesting banks to use it to serve the old and differently-abled people..
Mostly Economics 
