AMN
The government has authorised all public sector banks and three private banks to accept deposits under various small savings schemes like National Savings Certificate (NSC), recurring deposits and monthly income plan.
According to the government’s notification, the private banks are ICICI, HDFC and Axis Bank. So far, public sector 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. As per the notification, the banks will have to credit all remittances to the government account at RBI Central Account Section, Nagpur within one day in case of core banking solution branches and three days in case non- core banking branches.
Last month, the government kept unchanged interest rates on small savings schemes for the October-December quarter.
Investments in the public provident fund (PPF) scheme will fetch annual rate of 7.8 per cent while Kisan Vikas Patra investments will yield 7.5 per cent and mature in 115 months.
The one for girl child savings, Sukanya Samriddhi Account Scheme will offer 8.3 per cent annually. Similarly, the investment on 5-year Senior Citizens Savings Scheme will yield 8.3 per cent. The interest rate on the senior citizens scheme is paid quarterly.