National Small Savings Fund (NSSF)

News: The Delhi government has submitted a proposal to the Union Finance Ministry to borrow Rs 10,000 crore from the National Small Savings Fund (NSSF).

About National Small Savings Fund (NSSF)

1. NSSF is a fund that collects money from various small savings schemes.

2. It was established in 1999 within the Public Account of India.

3. The fund is administered by the Ministry of Finance, under the National Small Savings Fund (Custody and Investment) Rules, 2001. These rules are based on Article 283(1) of the Constitution.

4. The money held in the NSSF is used by the Centre and states to cover their fiscal deficits. The remaining amount is invested in central and state government securities.

5. Loans made from NSSF are more expensive than market borrowings.

About Small saving Schemes

1. These are government-backed savings instruments designed to encourage citizens of all ages to save consistently.

2. Savings scheme funds can be used for a mortgage, child’s education, marriage, or medical emergencies.

3. Features:

• They offer returns higher than bank fixed deposits.
• They come with sovereign guarantees and provide tax benefits.
• The interest rates on small savings schemes are revised quarterly.

4. Small Saving Schemes can be grouped under three heads:

(a) Post office Deposits: Post Office Savings Account, Post Office Time Deposits (1,2,3 and 5 years), Post Office Recurring Deposits and Post Office Monthly Account.

(b) Savings Certificates: National Savings Certificate and Kisan Vikas Patra

(c) Social Security Schemes: Public Provident Fund, Senior Citizens Savings Scheme and Sukanya Samriddhi Account