Banks don't give credit cards to senior citizens for these reasons; even RBI has guidelines for it

Banks often proactively offer credit cards to people, but not to the elderly. Do you know why this is? Let's explain.

Banks offer credit cards to those with a reliable source of income, but this is not typically the case for senior citizens. Credit cards are considered unsecured loans, meaning they are not backed by collateral. As such, banks require assurance that the cardholder can repay their dues. For elderly individuals, banks perceive a higher risk because, post-retirement, they often do not have a steady income. 

Additionally, health issues may arise, making it harder for them to meet repayment obligations. Therefore, banks find issuing credit cards to the elderly to be riskier.

The Reserve Bank of India (RBI) has not established specific rules regarding credit cards for senior citizens. However, according to RBI guidelines, lending to individuals over 60 years old is generally considered riskier. Consequently, banks are reluctant to issue credit cards to those aged 60 and above, opting instead to provide them with debit cards.

Banks have varying criteria for the minimum and maximum age for issuing credit cards.

For example, HDFC Bank requires applicants to be at least 21 years old, with a maximum age of 60 years for salaried individuals and 65 for business owners. 

According to the State Bank of India’s website, the age range for credit card applicants is 21 to 70 years. Applicants must also be salaried or self-employed and possess a good credit score.

The issue of denying credit cards to senior citizens has also been brought up in the Rajya Sabha.

Congress MP Renuka Chaudhary raised this concern during the Zero Hour, highlighting that while banks are willing to accept deposits from those over 60 years old, they refuse to issue credit cards to them. She argued that this rule is discriminatory and called for its immediate repeal.