Post office savings account interest be hiked, says panel
June 7th, 2011 - 10:11 pm ICT by IANS
New Delhi, June 7 (IANS) A committee headed by Reserve Bank of India (RBI) Deputy Governor Shyamala Gopinath has recommended that the interest rates on post office savings accounts be increased to four percent from the existing 3.5 percent in a bid to promote small savings.
The committee submitted its report to Finance Minister Pranab Mukherjee Tuesday, and has recommended hiking the post office savings account interest rate from 3.5 percent to four percent, benchmarking interest rates on other small savings schemes, the finance ministry said in a statement.
The committee, set up for comprehensive review of the National Small Savings Fund, also recommended that the mandatory component of investment of net small savings collections in state government securities should be reduced from 80 percent to 50 percent.
“The balance amount could either be invested in central government securities or could be on-lent to other states on basis of requirement, or could be lent for financing infrastructure projects requiring long-term finance,” it said.
- 8.7 percent interest on new post office savings scheme - Nov 29, 2011
- Interest rates on small savings raised by up to 0.50 percent - Mar 26, 2012
- Government sets up panel to review small saving funds - Jul 13, 2010
- Interest rates on provident fund, post office savings hiked - Nov 11, 2011
- RBI seeks feedback on savings deposit rate deregulation - Apr 28, 2011
- Inflation forces another rate hike by India's central bank (Second Lead) - May 03, 2011
- Inflation still at 'unacceptable' level: Pranab - Dec 15, 2011
- RBI may not hike rates as growth slows (Roundup) - Dec 15, 2011
- Inflation forces India's central bank to hike rates again (Roundup) - May 03, 2011
- Pay commercial taxes online in Karnataka - May 12, 2011
- Income tax exemption limit raised to Rs.2 lakh (Lead) - Mar 16, 2012
- No decision on savings account rate hike: City Union Bank - Nov 05, 2011
- Hallmarking of gold as quality assurance stuck in logjam - Oct 24, 2010
- Industry needs credit to boost growth: Anand Sharma - May 03, 2011
- Panel proposes hiking income tax exemption limit to Rs.3 lakh - Mar 09, 2012
Tags: bank of india, central government, collections, deputy governor, finance ministry, gopinath, government securities, infrastructure projects, interest rates, lent, New Delhi, post office savings account, pranab mukherjee, rbi, reserve bank of india, savings account interest rate, savings accounts, shyamala, state government, term finance