(a) whether a demand has been made in the banking industry that all Fixed Deposits
(FDs) with tenure of three years should be brought under section 80c;
(b) if so, the details thereof; and
(c) the action, being taken by the Government in this connection?
MINISTER OF THE STATE IN THE MINISTRY OF FINANCE (SHRI NAMO NARAIN MEENA)
(a) to (c): Indian Banks` Association {IBA) has informed that Special Deposit Scheme announced
by the Government for 80c benefit stipulated that amount deposited for a fixed period of not
less than 5 years would alone rank for benefit. However, based on the feedback received from
member banks, IBA had in the budgetary memorandum submitted to the Finance Ministry requested
that the lock-in period for the deposit may be reduced to 3 years. However, the Government has
not considered the above request.