Rajeev Chandrasekhar's official website - Member of Parliament

GOVERNMENT OF INDIA

Ministry of Finance

 

DEPARTMENT OF ECONOMIC AFFAIRS 

RAJYA SABHA

UNSTARRED QUESTION NO 4378

TO BE ANSWERED ON TUESDAY, THE 15TH MAY, 2007 VAISHAKA 25, 1929 (SAKA)

“Investment Schemes of NSSF”

4378.

SHRI RAJEEV CHANDRASEKHAR

 Will the Minister of FINANCE be pleased to state:-

(a)  names of investment schemes which constitute the National Small Savings Fund;

(b)  rate of interest payable to investors as on 1st April 2007, scheme-wise and that charged from State Governments and other loanees of fund applicable on same date;

(c)  corpus of the fund as on 31st March 2007;

(d)  gain that accrued, if any, to the fund during the last three years ending 31st March 2007, year-wise; and

(e)  whether there is any proposal to increase rate of interest on various schemes of the fund, in view of the rising interest rates of bank fixed deposits, and high inflation rates and if so, by when a decision is likely to be taken?

ANSWER

MINISTER OF STATE IN THE MINISTRY OF FINANCE

SHRI PAWAN KUMAR BANSAL

(a) & (b): The small savings schemes and the rate of interest/maturity value payable to investors as on 1.4.2007 is as follows : 

  1. Post Office Savings Account (3.5%); 
  2. Post Office Recurring Deposit Account (Rs.728.90 maturity value for a Rs.10/- denomination account); 
  3. Post Office Monthly Income Account (8%); 
  4. Posit Office Time Deposits: 1-Year Deposit (6.25%), 2-Year Deposit (6.50%), 3-Year Deposit (7.25%), & 5-Year Deposit (7.50%); 
  5. National Saving Certificate (VIII Issue) (Rs. 160.10 maturity value for a certificate of Rs. 100/- denomination);   
  6. Kisan Vikas Patra (Doubles in 8 years and 7 months); (vii) Senior Citizens Saving Schemes (9%); and 
  7. Public Provident Fund (8%). 
The rate of interest on investment in special State Government securities against net collections is 9.5 per cent per annum. Sums received in the Fund on redemption of securities are re-invested in Central Government 
special securities at market rate of interest based on average secondary market yields on G-secs. of comparable residual maturity as on the relevant date.
(c):The corpus of the Fund as on 31st March 2007 is Rs.7148.55 crore (Provisional Account).
 
(d):No gain has accrued to the Fund during the last three years. The accumulated deficits during 2005-06, 2006-07 (RE) and 2007(BE) have been Rs.  18551 crore, Rs. 20080 crore and Rs. 18490 crore, respectively.  
 

(e): There is no proposal at present to increase the rate of interest of various small savings schemes.