TMI BlogMeasures to Check Fall in Saving Deposits.X X X X Extracts X X X X X X X X Extracts X X X X ..... Measures to Check Fall in Saving Deposits. - News and Press Release Dated:- 30-8-2012 - News - Press Information Bureau Government of India Ministry of Finance 30-August-2012 16:44 IST Measures to Check Fall in Saving Deposits 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 (Ap ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ril-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 align ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed 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 i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n 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. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 depo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sit 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 diff ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... erential 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. * * * DSM/RS/bs - News - Press release - PIB Tax Management India - taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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