After the launch of its reverse mortgage scheme for senior citizens, the Central Bank of India (CBI) is now targeting cities like Dehra Dun and Pune, which are considered to be hub of retirees.
“Our initial response to the reverse mortgage scheme for senior citizens is very encouraging. We are now launching it in cities like Pune and Dehra Dun where we find a lot of scope,” said R K Dubey, Executive Director of the CBI here.
Through this scheme, the bank hopes to earn a business of Rs 100-200 crore in the next few years. Under the scheme, the senior citizens can avail pension against their property. The reverse mortgage is relatively a new concept in India though it is very popular in western countries.
Reverse mortgage is like regular mortgage but here the bank pays the property owner, usually a senior citizen over 60 years of age till he lives. The bank doesn’t ask for any repayment, instead it sells the property on the owner’s death and recovers its amount with interest. Any surplus funds available are distributed to the legal heirs of the owner.
About other schemes of the bank, Dubey said door-step banking launched by the CBI is also gaining currency in New Delhi. Under the scheme, businessmen can save their precious time as they can make deposits at their home on a phone call. “We are also expanding this scheme to other cities also,” he said .
Dubey said the CBI has shown remarkable performance during the past three years as the bank’s profits and business are growing sharply. The bank is planning to open 200 more branches and 2,500 ATMs.
After computerising all its branches, the CBI is now all set to computerise its 7 RRBs, which are having nearly 1,700 branches, he added.