Small Savings Schemes Current Affairs
The Union Government has reduced minimum yearly deposit required under popular girl child savings scheme, Sukanya Samriddhi Yojana to Rs 250 from Rs 1,000 earlier. This has been lowered to enable more people to enjoy benefits of this scheme. In this regard, Government has amended Sukanya Samriddhi Account Rules, 2016.
Sukanya Samriddhi Yojana
It was launched as a small savings scheme under Beti Bacho Beti Padho (BBBP) in January 2015. It aims to motivate parents to open an account in name of girl child for her welfare and meet expense requirements of higher education and marriage. Under this scheme, parent or legal guardian of a girl child can open an account in her name until she attains the age of ten years. The account can be opened via post office or commercial banks.
Deposits can be made in this account up to 14 years from date of opening of account. After this period, the account will only earn interest according to applicable rates. The minimum deposit that can be made every year into account is now Rs 250 and maximum amount on yearly basis is Rs 1.50 lakh.
The girl child can withdraw 50% of the money in the account after reaching age of 18 for higher education (18 years limit for preventing child-marriages). The amount deposited in it will get interest rate of 9.1% and there will be no income tax for this. The account will remain operative until the girl child reaches 21 age.
The Union Finance Ministry has allowed banks, including top three private sector lenders to accept deposits under various small savings schemes in order to encourage savings.
Until now, most of the small savings schemes were sold through post offices. This decision will allow increase outlets for selling small savings scheme that will result in higher mobilisation under scheme.
Now banks are eligible to sell National Savings Time Deposit Scheme 1981, National Savings (Monthly Income Account) Scheme 1987, National Savings Recurring Deposit Scheme 1981 and NSC VIII issue. All public sector banks (PSBs) and top three in the private sector viz. ICICI Bank, HDFC Bank and Axis Bank can receive subscription from the expanded portfolios. So far, these banks were allowed to receive subscription under Public Provident Fund (PPF), Kisan Vikas Patra-2014, Sukanya Samriddhi Account, Senior Citizen Savings Scheme-2004.
Small saving schemes
Small Savings Schemes are government run social welfare schemes that provide higher interest rate. These schemes are meant for small investors backed by a sovereign guarantee and tax benefits