Savings has always been a primary goal for the people who want to live independent and stress free life. So, in order to align with your financial goal and inculcate the habit of savings, the government has announced that all the public sector banks and three private sector banks can accept deposit under different small savings schemes.
Which banks are allowed to sell NSC and other saving schemes to the public?
As per the recent order passed by the government, the public sector banks and three private sector banks including ICICI, HDFC and Axis Bank can sell National Savings Time Deposit Scheme 1981, National Savings (Monthly Income) Scheme 1987 and National Savings Recurring Deposit Scheme 1981 and NSC VIII issue to the public.
Why this decision has been made?
Once a forte of Post Office has now been transferred to the banks, thanks to the government commitment to achieve its budgetary goal of 1 lakh crore through its small savings. Till now 40,000 crore has been collected and in order to realign with its financial goals the government has planned to start this scheme. Here’s what the top-most financial official has to say about the recent development.
“To smoothen out the process of collection (under small savings schemes), the government has allowed more banks, including from the private sector, to chip in.”
Will it attract the existing bank customers?
Well, according to the market experts positivity is in the air. This move will definitely lure the existing bank customers because the rate of interest offered by small saving bank schemes is 70-100 points more as compared to traditional FD. Though the banks have a large amount of FD in their chest, the credit-off take is low, hence this move will cheer up the mood of the banking sector.
What impact will it have on the banking sector?
It seems this move will have a positive impact on the already bleeding banking sector. The results are yet to be confirmed.