NEW DEHLI, 24 April 2015 – During the financial year 2014-15, WSBI member National Savings Institute, Ministry of Finance, took several new initiatives to popularize savings among the masses and facilitating participation of so far non-banked people to open an account in any of the savings accounts being offered by the Government of India. National Savings Institute, Ministry of Finance, Government of India launched two new financial products – one for small investors and another for girl children. This was in addition to the Hon’ble Prime Minister’s Jan Dhan Yojana, under which a savings account with multiple benefits, for every household has been targeted. Below is a set of initiatives taken in this direction.
Existing products modified, rate of interest enhanced, tax incentives offered and the following new products launched
- KIsan Vikas Patra – The scheme is targeted to benefit small investors, who invest their savings for good return and easy liquidity. Money invested in Kisan Vikas Patra doubles in 100 months and can be prematurely cashed any time after 30 months, with pre-determined value. The reach of the scheme has been enhanced as the certificates will be available in all authorized branches of nationalized and other commercial banks, in addition to all post offices across the country. The scheme was launched by the Honorable Union Finance Minister Shri Arun Jaitley in the presence of Honorable Union Minister for Communication, Information & Broadcasting Shri Ravi Shankar Prasad, in a function organized by National Savings Institute in New Delhi on 18 November 2014.
Photo: Launching of Kisan Vikas Patra
Left to right: Dr. Rajat Bhargava, Joint Secretary to Govt. of India, Mr. Rajiv Mehrishi, Finance Secretary to Govt. of India, Mr. Arun Jaitley, Finance Minister, Mr. Ravi Shankar Prasad, Minister for Communication & Information Technology, Ms. Kavery Banerjee, Secretary Posts during Kisan Vikas Patra launch.
- Sukanya Samriddhi Account – A savings product designed for welfare of girl children and targeted to motivate the parents to save for their girl child, to meet the financial needs of higher education and marriage expenses. The account can be opened with a minimum deposit of Rs. 1000 and maximum Rs. 1,50,000 can be deposited in the account in a financial year. Fifty per cent of the accumulation including the interest, can be withdrawn for higher education expenses when the girl child attains the age of 18 years – minimum marriage age as per law. To motivate parents to save for the girl child, highest rate of interest with complete tax exemption, has been offered on the account. The scheme was launched by Honorable Prime Minister of India, in a function held on 22 January, 2015, in the presence of eminent Cabinet Ministers, His Excellency the Governor and Honorable Chief Minister of Haryana. More than 3 million accounts have been opened under the scheme within first two months of the programme launch.