(a) the present worth of postal savings in the country as compared to banks;
(b) whether the interest rates of postal savings are lower than banks and other financial
institutions;
(c) if so, the details thereof and the action taken by the Government to increase the interest
rates of postal savings; and
(d) the other measures taken and facilities provided by the Government to customers of postal
savings schemes?
MINISTER OF THE STATE IN THE MINISTRY OF COMMUNICATIONS AND INFORMATION TECHNOLOGY
(DR. (SMT.) KILLI KRUPARANI)
(a) Madam, as on 31.03.2012 the outstanding balance in Small Savings Schemes was Rs 606585
crore and in Savings & Term Deposits of Public Sector Banks the outstanding balance was Rs
4120201 crore.
(b)& (c) The Small Savings Schemes, carrying different terms and rates of interest administered
by Government of India, are designed to provide safe and attractive option to all individuals
who invest in these savings schemes. Banks have been given freedom by Reserve Bank of India
(RBI) to fix their rates on domestic term deposits of various maturities. Interest rates on
Small Savings Schemes have been aligned with Government Securities rates of similar maturity
with a spread of 25 basis points (bps) with two exceptions. The spread on 10 year NSC will be
50 bps and on Senior Citizens Savings Scheme 100 bps. The interest rates for every financial
year are notified before 1st April of that year. Therefore, interest rates of Small Savings
Schemes are not comparable with the rates being offered by the Banks for their various term
deposit schemes. However, presently interest offered on Small Saving by Post Offices on all
tenors is higher than the modal deposit rate offered by the Scheduled Commercial Banks (SCBs)
on all tenors.
(d) Central and State Governments take various measures from time to time to promote and
popularize Small Savings Schemes through print and electronic media as well as holding
seminars, meetings and providing training to the various agencies involved in mobilizing
deposits under various Small Savings Schemes. Further, with a view to sustaining investor’s
interest in the Small Savings Schemes, the features of the schemes are reviewed from time to
time and various improvements and amendments in the schemes are introduced.