The Hindu Business Line : Bengal Postal Circle to earn Rs 330 cr via small savings

THE West Bengal Postal Circle, comprising West Bengal, Sikkim & Andaman & Nicobar Islands, hopes to earn around Rs 330 crore in the current fiscal as reimbursement from the Union Finance Ministry for household savings collections in the postal circle.

In 2003-04, the West Bengal Postal Circle earned Rs 300 crore as reimbursement for household savings collections through the postal network in the West Bengal Postal Circle.

The postal department collects household savings or small savings, as they are popularly known, on behalf of the Union Finance Ministry through its network. The schemes under which money is collected from the public include savings accounts, fixed deposits and recurring deposit schemes of the Post Office Savings Bank, Monthly Income Scheme, National Savings Certificates, Kisan Vikas Patra and Public Provident Fund. Hundred per cent of the net mobilisation is given to state governments as long-term loan.

The Post Office Savings Bank commenced operations way back in 1882.

According to informed sources, the West Bengal Postal Circle is No 1 in household savings collections in the country. In 2003-04, gross mobilisation in the postal circle stood at a whopping Rs 18,000 crore, up from Rs 12,630 crore in 2002-03. The growth is expected to be maintained, thanks to the recently announced scheme for senior citizens which assures an annual interest of nine per cent.

On an all-India basis, small savings collections stood at around Rs 2,00,000 crore in 2003-04. A major portion of this was accounted for by monthly income scheme, which is very popular since it assures a return of eight per cent plus 10 per cent bonus on the amount invested at the end of six years. The monthly income scheme is popular with retired people and the urban, salaried middle class.

The sources said that the Department of Posts has taken several steps to ensure smooth and seamless operational management of small savings collections and disbursements.

More Stories on : Small Savings | Other States

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page