West Bengal contributes highest to small savings schemes

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New Delhi: West Bengal accounts for the highest collection of about Rs 90,000 crore from small savings schemes such as NSC and PPF among the states and union territories, which is about 15% of the total corpus.

It is followed by Uttar Pradesh, the largest state in terms of population, with gross collection of Rs 69,660.70 crore out of the Rs 5.96 lakh crore garnered during 2017-18 (last updated), as per data collated by the National Savings Institute under the finance ministry.

The government on April 1 revoked a steep interest rate cut on small savings schemes announced the previous night. The ministry’s office memorandum to roll back cut in rates on small savings scheme came hours after the finance minister termed Wednesday’s notification as an “oversight”.

While the government routinely announces interest rates for small savings schemes at the end of every quarter, Wednesday’s decision to cut interest rates by up to 1.1% across various small savings schemes, including Public Provident Fund (PPF) and National Savings Certificate (NSC), had come a day before the second phase of polling in West Bengal and Assam.

The rate of interest on various small savings schemes for the first quarter of 2021-22 starting from April 1 and ending on June 30, 2021 would remain unchanged from those notified for the fourth quarter (January 1 to March 31, 2021) of 2020-21, the finance ministry said in the office memorandum in suppression of its previous order.

As per the National Savings Institute data, West Bengal has been leader in collections for the small savings schemes and the collection hovered around 12-15% in the last few years.

The National Savings Institute is a body under the Department of Economic Affairs of the finance ministry.

States like Assam garnered Rs 9,446.37 crore, Kerala Rs 14,763.01 crore, Puducherry Rs 1,082.40 crore and Tamil Nadu Rs 28,598.18 crore during 2017-18.