Centre to consolidate small savings laws

Centre to consolidate small savings laws

Context:

• In a bid to consolidate the legislations pertaining to small savings schemes, the government is proposing a merger of the various laws into a Government Savings Promotion Act.

Highest priority:

• The government gives highest priority to the interest of small savers, especially savings for the benefit of girl child, the senior citizens and the regular savers who form the backbone of our country’s savings architecture.

Benefits retained

• No existing benefits to depositors are proposed to be taken away through this process.
• The main objective in proposing a common Act is to make implementation easier for the depositors.
• To introduce certain flexibilities for the investors.
• Some of the small savings schemes also enjoy income tax benefits.