Rationalisation of Schemes
(i) The maturity period for
Monthly Income Scheme (MIS) and National Savings Certificate (NSC) will be
reduced from 6 years to 5 years.
(ii) A new NSC instrument, with maturity period of
10 years, would be introduced.
(iii) Kisan Vikas Patras (KVPs) will
be discontinued.
(iv) The annual ceiling on
investment under Public Provident Fund (PPF) Scheme will be increased from `
70,000 to `
1 lakh.
(v) Interest on loans obtained
from PPF will be increased to 2% p.a. from existing 1% p.a.
(vi) Liquidity of Post Office Time
Deposit (POTD) – 1, 2, 3 & 5 years – will be improved by allowing
pre-mature withdrawal at a rate of interest 1% less than the time deposits of
comparable maturity. For pre-mature
withdrawals between 6-12 months of investment, Post Office Savings Account
(POSA) rate of interest will be paid.
Interest Rates on Small Savings Instruments
(i) The rate of interest paid
under Post Office Savings Account (POSA) will be increased from 3.5% to 4% p.a.
(ii) The rate of interest on small
savings schemes will be aligned with G-Sec rates of similar maturity, with a
spread of 25 basis points (bps) with two exceptions. The spread on 10 year NSC (new instrument)
will be 50 bps and on Senior Citizens Savings Scheme 100 bps. The interest rates for every financial year
will be notified before 1st April of that
year.
(iii) Assuming the date of
implementation of the recommendations of the Committee as 1st December, 2011, the rate of interest on
various small savings schemes for current financial year on the basis of the
interest compounding/payment built in the schemes, will be as given below:-
Instrument
|
Current Rate (%)
|
Proposed Rate (%)
|
Savings Deposit
|
3.50
|
4.0
|
1 year Time Deposit
|
6.25
|
7.7
|
2 year Time Deposit
|
6.50
|
7.8
|
3 year Time Deposit
|
7.25
|
8.0
|
5 year Time Deposit
|
7.50
|
8.3
|
5 year Recurring Deposit
|
7.50
|
8.0
|
5-year SCSS
|
9.00
|
9.0
|
5 year MIS
|
8.00 (6 year MIS)
|
8.2
|
5 year NSC
|
8.00 (6 year NSC)
|
8.4
|
10 year NSC
|
New Instrument
|
8.7
|
PPF
|
8.00
|
8.6
|
(iv) Payment of 5% bonus on maturity of MIS will be
discontinued.
Commission to Agents
(i) Payment of commission
on PPF schemes (1%) and Senior Citizens Savings Scheme (0.5%) will be
discontinued.
(ii) Agency commission
under all other schemes (except MPKBY agents) will be reduced from existing 1%
to 0.5%.
(iii) Commission at existing
rate of 4% will continue for Mahila Pradhan Kshetriya Bachat Yojana (MPKBY)
agents.
(iv) Incentives, if any,
paid by the State/UT Governments will be reduced from the commission paid by
the Central Government.
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