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FINANCE |
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THE
NATIONAL SAVINGS SCHEMES
The National Savings
Scheme.-In advanced countries of the West, mobilisation of
small savings is carried on as a mass movement by the State for the
last 75 years. The beginning of Government mobilisation of small
savings in India could be traced to World War I (1914-18) when the
then Government issued postal cash certificates of 5 years', 7
years' and 10 years' duration. They were sold at a discount and
repaid at par after the completion of the maturity period. They were
discontinued a few years after the War.
During World War II (1939-43), such certificates
were again introduced and even after the War they have been
continued in a more intensive form because small savings from a
large number of people can become a substantial item in the capital
resources that are required for carrying out the Nation's Five-Year
Plans.
The following categories of investments have been
classified as Small Savings Investment since 1957:-
(1) Twelve-Year National Plan Savings Certificates
issued in denominations of a minimum of Rs. 5 and a maximum of Rs.
5,000 and yielding simple interest of 5.41 per cent. or compound
interest of 4.25 per cent.
(2) Ten-Year Treasury Savings Deposit Certificates
issued in denomination of Rs. 50. and Multiples of Rs. 50 and
yielding interest of 4 per cent. per annum which is paid every year.
(3) Fifteen-Year Annuity Certificates whereby
accumulated savings can be invested as a lump sum and received back
in monthly instalments for a period of 15 years, the rate of
interest being about 4¼ per month compound.
Total subscriptions received to the Treasury Savings
Deposit Certificates since the inception of the scheme in 1951 till
March 1958 at the Kolhapur branch of the State Bank of India,
Treasury and Sub-treasuries in the district amounted to Rs.
19,33,200 and the total amount refunded before maturity till January
1957 amounted to Rs. 42,000.
Rupees 14,000 were invested in the 15 years annuity
certificates during the period 1952 to 1957 in the district of
Kolhapur.
The figures of actual gross and net collections in
small savings in the district for the period from April 1957, to
February 1958, were Rs. 53,05,000 and Rs. 11,31,000 respectively.
They were exclusive of investments in post office savings
banks. | 
