Press Information Bureau

Government of India

Ministry of Finance

02-September-2011 18:20 IST

Measures to Popularize Small Saving Schemes

Central and State Governments take various measures from time to time to promote and popularize small saving schemes through print and electronic media as well as holding seminars, meetings and providing training to the various agencies involved in mobilising deposits under these schemes.

A website of the National Savings Institute under Government on India, Ministry of Finance has also been launched to facilitate interface with the public through wider investors grievances. The website address is nsiindia.gov.in.

The Committee on National Small Savings Fund has observed that 4% commission under Mahila Pradhan Kshetriya Bachat Yojna (MPKBY) is very high and is affecting the viability of National Small Savings Fund (NSSF). The committee has recognized that the Recurring Deposit Scheme requires considerable effort on part of agents in mobilising monthly deposits. However, 4% commission is distortionary and expensive. The Committee has recommended that it should be brought down to 1% in a phased manner in a period of three years with a 1% reduction every year.

Recommendations of the committee have been referred to State Governments and concerned Ministries/Departments of Central Government for their comments.

This information was given by the Minister of State for Finance, Shri Namo Narain Meena in written reply to an Unstarred Question in Lok Sabha today.

DSM/ SS/PM

Commission reform proposed to phase down high agent commissions that affect small savings fund viability, with staged implementation. A Committee review concluded that the prevailing agent commission under the Mahila Pradhan Kshetriya Bachat Yojna is high and harms the viability of the National Small Savings Fund; it recommended a phased multi-year reduction in commission rates and referred those recommendations to State Governments and concerned Central Ministries/Departments for comments.