BANKING TRADE AND COMMERCE

SMALL SAVINGS SCHEMEs

Small savings schemes are meant to augment the resources of the State for financing the Five-Year Plans. The agencies for the mopping up of these savings include post office savings banks and other institutions conducting the savings campaign and collection drive.

The post office savings 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.

Yeotmal district possesses an extensive net work of post offices doing savings bank work. The following statement gives the particulars of postal savings banks in the district for the years 1963-64, 1964-65 and 1965-66.

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

(i) National defence certificates.

(ii) 15 year cash annuity certificates.

(iii) 10 year defence certificates.

(iv) Cumulative time deposits.

(v) Saving stamps.

(vi) Prize bonds.

National Defence Certificates.

The commencement of the first of these schemes dates as far back as World War I when the then Government initiated the national savings schemes 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 Second World War, in 1943 the Government started the scheme of national savings certificates. This scheme was discontinued in 1957 when the Government introduced 12 year national defence savings certificates. It carries a higher rate of interest i.e., 6.25 per cent simple at maturity and 4.75 compound. The certificates are in denomination of Rs. 5, Rs. 10, Rs. 50, Rs. 100, Rs. 500, Rs. 1,000 Rs. 5,000 and Rs. 25,000.

The details about the national defence certificates sold in Yeotmal district for the years 1963-64, 1964-65 and 1965-66 are given in the following statement: —

15 year cash Annuity Certificates.

Those who want to invest their money tan also invest in 15 year annuity certificates, sold in multiples of Rs. 3,525 up to Rs. 26,600 and yielding the amount together with compound interest of approximately 4.25 per cent every year by way of monthly payments, spread over 15 years. Annuity certificates can now be had for Rs. 1,330 yielding an annuity of Rs. 10 per month for 15 years. These investments are available for a single adult, two adults jointly and a guardian on behalf of a minor. Institutions, corporations and firms cannot make investments in these annuity certificates.

The full particulars about the collections under this scheme in the district for the years 1963-64, 1964-65 and 1965-66 are given below: —

10 Year Defence Certificates.

This has replaced the 10 year treasury savings deposit certificates. It carries a higher rate of interest, viz. 4½ per cent per annum.

Deposits for the purchase of these certificates are accepted at all offices of the Reserve Bank of India, branches of the State Bank of India and its subsidiaries, conducting Government treasury business and at Treasuries and Sub-Treasuries.

The certificates are issued in the denomination of Rs. 50 and its multiples. An adult can purchase these certificates on behalf of a minor.

The particulars about collections and withdrawals during the years 1963-64, 1964-65 and 1965-66 in the district are given in the following statement.

Under this scheme an investor can deposit every month Rs. 5, Rs. 10, Rs. 20, Rs. 100 or Rs. 300 at a post office for a period of 5, 10 or 15 years. At the end of the period the investor receives a handsome lump sum.

Cumulative time Deposits.

The interest at maturity works out to about 3.3 per cent on a five year account, 3.8 per cent on a ten year account and 4.3 per cent on a 15 year account.

The following statement gives the full particulars ahout the scheme for the years 1963-64, 1964-65 and 1965-66.

Savings Stamps.

To cultivate the habit of saving among the people the Government of India introduced the scheme of savings stamps. The investor can make payments into cumulative time deposit account even by depositing savings stamps instead of cash. These savings stamps are sold at the post offices for Paise 25, Paise 50 and Re. 1.00

Prize Bonds.

The premium prize bonds provide both a return on the money invested and chances of winning handsome prizes. The bonds are in the form of bearer bonds and are in denominations of Rs. 5 and Rs. 100. No application is required for their purchase.

The bonds are repaid after 5 years from the date of their sale, together with a premium of 10 per cent. In addition to the premium of 10 per cent mentioned above, the holders are eligible to participate in two draws for prizes to be held subsequently.

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