BANKING TRADE AND COMMERCE

SMALL SAVINGS SCHEMES

Post-office savings Banks.

Small Savings are meant to augment the resources for financing the Five-Year Plans. The agencies for the mobilisation of these savings include inter alia the insurance companies and societies, the Life Insurance Corporation of India, post-office savings banks and other institutions conducting the savings campaign and collection drive.

The post-office savings hanks constitute the most important source for small savings. They are particularly suited for collection of savings in rural areas where there are no banking facilities.

Amravati district possesses an extensive net-work of post-offices doing savings bank work. The following statement gives particulars of postal savings banks in the district for a period from 1959-60 to 1961-62: -

Besides the post-office savings banks there are other channels through which the savings of the people are mobilised. They are-

(i) National Savings Certificates,

(ii) National Plan Savings Certificates, (iii) Treasury Savings Deposit Certificates, (iv) 15-year Annuity Certificates, and (v) Cumulative Savings Deposit Scheme. In addition, the Government have recently introduced the, " Prize-bond " scheme.

Postal Cash Certificates and National Savings Certificate.

The commencement of the first of these schemes dates as far back as World War I when the then Government initiated the National Savings Scheme through the issue of Postal Cash Certificates. These certificates had a maturity period of five years and were sold at a discount and repaid on maturity at Rs. 10, Rs. 50 or Rs. 100 as the case might be. The scheme continued for some years even after the First World-War. During the 2nd World-War, in 1943, the Government started the scheme of (Post-Office) National Savings Certificates. This scheme was discontinued in 1957 when the Government intro-duced the 12-year National Plan Savings Certificates.

The net withdrawals from the National Savings Certificates of different maturities is given below:-

National Plan Savings Certificates.

These new 12-year National Plan Certificates yield an income-tax-free simple interest of 5.41 per cent and compound interest of 4.25 per cent on maturity. The certificates are encashable at any time after the completion of one year from the date of issue. The Government of India has permitted pledging of these certificates with the scheduled banks and co-operative societies and banks in order to enable the small savers to get temporary accommodation in case of need without encashing their certificates prematurely. The certificates are sold at all post-offices doing savings banks' business in denominations of Rs. 5, Rs. 10, Rs. 50, Rs. 100, Rs. 500, Rs. 1,000 and Rs. 5,000. The maximum holdings permissible in these certificates are Rs. 25,000 for a single holder and Rs. 50,000 for joint-holders.

The following statement gives the net collection of small savings through the 12-year National Plan Savings certificates since their inception in the district: -

The Ten-Year Treasury Savings Deposit Certificates were issued from 1951. Formerly, the deposits were to be multiples of 100 only with a ceiling on the maximum amount that could be invested. From January, 1958, deposits are accepted in multiples of Rs. 50 only. These certificates bear an interest of four per cent per annum. Investment in them can be made by cash or by cheque. The interest is paid annually on the completion of each period of twelve calendar months from the date of deposit. It is exempt from income-tax, can be hypothecated and encashed before maturity, with due allowance for discount.

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