INDIA: No Change in Interest Rates on Saving Schemes

NEW DELHI (The Hindu BusinesLine-PTI), May 30, 2006: There is no proposal under the Government's consideration to revise the interest rates on small savings schemes. "The rates stay where they are. Nothing is under consideration," Finance Ministry Joint Secretary (Budget) L. M. Vas, told reporters at a function to mark the launch of a Web site of the National Savings Institute. At present, interest rate in the range of 3.50 per cent to 9 per cent is given on eight small savings schemes. While the lowest interest rate of 3.50 per cent is given on post office savings account, nine per cent rate is given on senior citizens savings scheme payable quarterly. She said "marginal" dip in mobilisation of small savings are reported since many deposits came up for redemption and there is now bar on institutional investors depositing their money on these schemes. The schemes are still attractive for those who do not want to risk their money in the market, she added. The Web site, http://nsiindia.gov.in, can be accessed for information about various small savings schemes offered by the Union Government, extension agency system for mobilising deposits, services provided by NSI and its regional offices. It also carries the provision of single window mechanism for online management of queries and complaints with regard to small savings. Copyright © 2006 The Hindu Business Line.