The Hindu Business Line : Bengal tops resources mop-up through postal small savings

THANKS to the traditional mindset of the people veering round secured investment, West Bengal on Wednesday topped the list of postal circles with regard to mobilisation of resources through various small savings schemes of post offices.

In 2001-02, West Bengal accounted for 17.69 per cent or Rs 6,488.02 crore of the net all-India small savings mobilisation of Rs 36,694.69 crore. In fact, the West Bengal Postal Circle comprising West Bengal, Sikkim and Andaman & Nicobar Islands has surpassed small savings targets for several years now.

According to informed sources, in terms of the growth rate in mobilisation, the State's performance was better than the all-India average in three out of the five financial years ended March 31, 2002. In fact, in 2001-02, the net mobilisation in West Bengal grew by 7.17 per cent even as the net mobilisation on an all-India basis declined by 2.41 per cent.

The sources told Business Line that most postal administrations in the 190 countries that form part of the Universal Postal Union were engaged in garnering small savings. In India, the Department of Posts just administers the small savings schemes as an agent and on behalf of the Union Ministry of Finance. For this service, the Department of Posts earns no money but expenses incurred by it on this score are reimbursed by the Union Ministry of Finance.

About 70 per cent of the net small savings mobilisation is given to the States as long-term loan even as the balance is retained by the Union Ministry of Finance. These small savings schemes are promoted by the small savings directorates in the States and the Nagpur-based National Savings Organisation.

The small savings schemes, which find favour with mostly the salaried class and retired people include, savings, recurring and time deposits, Public Provident Fund, National Savings Certificates and Monthly Income Schemes.

The Union Ministry of Finance reimburses the Department of Posts Rs 97.24 per account in respect of various small savings schemes. Reimbursement in respect of each Kisan Vikas Patra and National Savings Certificates transaction is Rs 27.43 and that in respect of Indira Vikas Patra is Rs 7.28. At these rates, the contribution of West Bengal in 2001-02 stood at Rs 94.84 crore.

The sources said that the popularity of small savings had not declined in West Bengal despite lowering of the interest rates. This could be attributed to the fact that co-operative and rural banking in the State have not gained in popularity as in other States.

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