The Narendra Modi government has taken this massive step that will allow the common man to save more money without getting into too many hassles. Centre has permitted three private sector banks ICICI Bank, HDFC Bank and Axis Bank along with all public sector banks to accept deposits from a number of schemes like Kisan Vikash Patra (KVP) National Savings Certificate (NSC) and Monthly Income Scheme (MIS), along with others, Times of India said. As per the report, these schemes come under government’s National Savings Time Deposit Scheme, which is currently being handled by post offices as government’s main agents.
In a notification issued on October 10, the finance ministry allowed these banks to receive subscriptions under National Savings Time Deposit Scheme, 1981. After systems are put in place, these banks will get investors money under KVP, NSC and MIS etc. Post Offices across the country will also continue to receive money from investors under these schemes, the paper added.
The Government, in the Budget for fiscal 2018, had made an estimation to collect about Rs 1 lakh crore from small savings schemes, Times of India further said. About Rs 40,000 crore has been collected in the first five months, a finance ministry official said recently, the paper added.
On September 29, the government had kept interest rates schemes like PPF, KVP and Sukanya Samriddhi unchanged for October-December quarter, PTI said. “The rates of interest on various small savings scheme for the third quarter of the financial year 2017-18 starting October 1 shall remain unchanged from those notified for the second quarter of 2017-18,” the Finance Ministry had said in a release.
As per the decision of the government, interest rates for small savings schemes are needed to be notified on a quarterly basis since April 1, 2016, the ministry had said while issuing rates for third quarter of the financial year 2017- 18, PTI added.