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Government permits banks to sell more small savings schemes
October 20 , 2017
2404 days
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- The union government has allowed all public sector banks, including top three private sector lenders, to accept deposits under various small savings schemes.
- This is done mainly in order to encourage savings through schemes like National Savings Certificate (NSC), recurring deposits and monthly income plan.
- Until now, most of the small savings schemes were sold through post offices.
- So far, these banks were allowed to receive subscription under Public Provident Fund, Kisan Vikas Patra-2014, Sukanya Samriddhi Account, Senior Citizen Savings Scheme-2004.
- Increased outlets for selling small savings scheme would result in higher mobilisation under the scheme.
- On the basis of the decision of the government, interest rates for small savings schemes are to be notified on a quarterly basis since April 1, 2016.
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