ForumIAS LATEST
- Prelims Test Series (PTS) for Prelims 2027 starts 11th Oct. 2026 Click Here to know more →
- [Pre-order] Ethics Redbook 3rd Edition: Delivery starts from 10th October onwards Click Here to Read More →
- 21 Sept. | Forum Residential Coaching (FRC) for UPSC preparation Click Here to know more →
- 21 Sept. | GS Advance Program (GSAP) for UPSC 2027 Mains starts from 10th Oct. Click Here to Read More →
Govt permits banks to sell more small savings schemes like NSCs, MIS
Context
- The govt allows banks, including top 3 private lenders, to accept deposits under small savings schemes like national saving certificates (NSCs), Recurring deposits and Monthly income scheme (MIS). Until now, these small savings schemes were sold through post offices
About notification
- According to a recent government notification, banks can also sell National Savings Time Deposit Scheme 1981, National Savings (Monthly Income Account) Scheme 1987, National Savings Recurring Deposit Scheme 1981 and NSC VIII issue
- All public sector banks and top three in the private sector — ICICI Bank, HDFC Bank and Axis Bank — to receive subscription from the expanded portfolios. So far, these banks were allowed to receive subscription under Public Provident Fund, Kisan Vikas Patra-2014, Sukanya Samriddhi Account, Senior Citizen Savings Scheme-2004
Impact
- Increased outlets for selling small savings scheme would result in higher mobilisation under the scheme.
Interest rate on various schemes
- Public provident fund (PPF) scheme will fetch annual rate of 7.8%
- Kisan Vikas Patra (KVP) investments will yield 7.5% and mature in 115 months.
- Sukanya Samriddhi Account Scheme will offer 8.3% annually.
- The investment on 5-year Senior Citizens Savings Scheme will yield 8.3%. The interest rate on the senior citizens scheme is paid quarterly.
- Interest rates for small savings schemes are to be notified on a quarterly basis since 1 April 2016,
