The details of saving
deposits with Banks and Gross and Net Small Savings Collections during 2009-10,
2010-11, 2011-12 and during the current year are given below:-
(Rs. In Billion)
|
2009-10
|
2010-11
|
2011-12
|
2012-13
|
|
|
Saving Deposits with Banks
|
11,367
|
12,855
|
14,442
|
15,578(April-August)
|
|
Gross Small Savings Collections
|
2509.3
|
2,747.2
|
2,190.0
|
516.7 (April-June)
|
|
Net Small Savings collections
|
643.5
|
586.5
|
6.5
|
(-) 19.2 (April-June)
|
While
the saving deposits with banks have a positive growth, there has been a decline
in gross and net small savings collections.
The
Government, inter alia, has taken the following decisions with regard to
interest rates and other measures for making small saving schemes attractive:-
1. The
rate of interest on small savings schemes has been aligned with G-Sec rates of
similar maturity, with a spread of 25 basis points (bps) with two
exceptions. The spread on 10 year NSC (new Instrument) will be 50
bps and on Senior Citizens Savings Scheme 100 bps.
2. The
rate of interest on Post Office Savings Account (POSA) has been increased from
3.5 % to 4%. The ceiling of maximum balance in POSA (Rs.
1 lakh in
single account and Rs. 2 lakh in
joint account) has been removed.
3. The
maturity period for Monthly Income Scheme (MIS) and National Savings
Certificate (NSC) has been reduced from 6 years to 5 years.
4. A
new NSC instrument, with maturity period of 10 years, is being introduced.
5. The
annual ceiling on investment under Public Provident Fund (PPF) Scheme has been
increased from Rs. 70,000 to Rs. 1 lakh.
6. Liquidity
of Post Office Time Deposit (POTD)-1,2,3 & 5 years – has been improved by
allowing pre-mature withdrawal at a rate of interest 1% less than the time
deposits of comparable maturity. For pre-mature withdrawals between
6-12 months of investment, Post Office Savings Account (POSA) rate of interest
will be paid.
The Reserve Bank of India has
also deregulated the savings bank deposit interest rate effective October 25,
2011. Banks are now free to determine their savings bank deposit
interest rate, subject to the following two conditions: First, each bank will
have to offer a uniform interest rate on savings bank balances up to Rs.
1 lakh,
irrespective of the amount in the account within this limit. Second,
for savings bank balances over Rs. 1 lakh a bank may provide differential rates of
interest, if it so chooses.
This was stated by the Minister of State
for Finance, Shri Namo Narain Meena in written reply to a
question in the Rajya Sabha today.
