Government withdraws order on rate cut on small savings schemes

• Finance Minister has said that interest rates on small savings schemes will continue to be at the levels as in March 2021.

• Ministry of Finance decides the small savings interest rates on a quarterly basis and the schemes are classified under three heads Postal deposits like savings account, Savings certificates like National Small Savings Certificate, Social security schemes like Public provident fund.

• All small savings collections are credited to National Small Savings Fund administered by Department of Economic Affairs.

Senior Citizens Savings Scheme Account:

• This scheme is for those over 60 years old.

• Maximum investment – Rs 15 lakh.

• Those above 55 years of age but below 60 can also avail it, subject to certain conditions.

Public Provident Fund Account:

• It has a 15-year lock-in period.

• Minimum deposit is Rs. 500, and Rs. 500 every financial year.

Sukanya Samriddhi Account:

• Listed under Beti Bachao, Beti Padhao scheme.

• A guardian can open this account in favour of girl children up to 10 years of age.

• Minimum Investment is Rs. 250 per year. The maximum Investment is Rs. 1,50,000 per year.

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Mains Paper 2: Governance

Prelims level: small savings schemes

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