I am a recently retired defence pensioner with more than 37 years of service. My net monthly pension is about Rs. 80, 000 and my CIBIL score is just shy of 800. I had applied for credit cards of HDFC, SBI and Axis, but all of them have declined the request. During the application, I observed that if I put my occupation as 'Retired', these banks decline the request without even asking for details such as net income, credit score, IT returns, etc. I also have a healthy bank balance in all these banks. On the other hand, 'salaried' persons with a much lower income are approved without question. Why are banks treating all retired persons with the same broad brush? I can understand if they have some concern regarding the ability of certain people to pay, but pensioners are not paupers. Our ability to repay our debts can be easily ascertained by asking for the income, IT returns and credit score details mentioned above. In fact, banks and online e-commerce sites are losing a large segment of respectable citizens who would have otherwise used these credit cards for making purchases. And this is also hurting the economy since it reduces the number of people who buy things online. Hope that Moneylife can take this up with RBI.
Our Experts

Sucheta Dalal Trustee - Moneylife Foundation

Abhay Datar Abhay Datar is a consumer activist and is also Member of the Managing Committee of Mumbai Grahak Panchayat (MGP). He was Treasurer at MGP for over two and a half years. After working at Bank of Baroda for about 29 years, he retired as IT Manager. After retirement, Mr Datar joined Consumer Guidance Cell of MGP in 2008 and solved many cases related to banking including online fraudulent transactions, misuse of credit cards and ATM cards. Also handled cases related to mobile and mediclaim. Mr Data

Suresh Prabhu Mr Prabhu retired as Senior Vice President from HDFC Bank

R Bhuvaneswari After serving Bank of Baroda for almost 40 years, Ms Bhuvaneshwari retired as Chief Manager in 2013.

Yogesh Sapkale Yogesh Sapkale is Deputy Editor of Moneylife and writes on finance, credit related issues

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