To address decline in small savings and improve returns to small savers, Government has proposed to revitalize small savings.

Kisan Vikas Patras have been reintroduced and notified. A scheme for Girl Child to cater to requirements of education and marriage have been notified. The Government has also enhanced annual investment ceiling on Public Provident Fund Scheme from ₹ 1.00 lakh to ₹ 1.50 lakh.

Government is running ‘Senior Citizens Savings Scheme’. The rate of interest on small savings schemes has been aligned with the G-Sec rates of similar maturity, with a spread of 25 basis points (bps) with exception of Senior Citizens Savings Scheme. The spread on Senior Citizens Savings Scheme is 100 bps.

This information was given by the Minister of State of Finance, Shri Jayant Sinha in written reply to a question in Lok Sabha.

Small savings policy: reintroduced retail instruments and interest alignment with government securities to improve saver returns. Kisan Vikas Patras have been reintroduced and a Girl Child savings scheme notified; the Public Provident Fund investment ceiling has been raised and the Senior Citizens Savings Scheme continues as a distinct instrument. Interest rates for small-savings schemes are aligned with yields on comparable government securities plus a fixed spread, with a larger spread applying to the Senior Citizens Savings Scheme.