Don’t park all investments in small saving schemes
A large portion of Indian household savings are mobilized through small saving schemes. In 2017-18, Rs 5.96 lakh crore was the gross amount mobilized. The primary objective of the small savings program driven by the Government has been to promote the habit of thrift and savings among citizens of the country. The emphasis on the words ‘small savings’ is to bring the small saver into the fold of the savings movement.
Small savings schemes fall under the purview of National Savings Institute (NSI) that works under the Department of Economic Affairs, Ministry of Finance, Government of India. Operated through post offices and designated banks throughout the country, small saving schemes can be accessed in the remotest parts of the country.