The reintroduction of Kisan Vikas Patra (KVP) and the launch of more savings schemes are expected to boost the saving habit in Chennaiites, and provide the much-needed thrust to post offices.
Referring to Union finance minister Arun Jaitley’s Budget speech on Thursday, officials of the postal department said KVP was one of the popular saving schemes, until it was scrapped in December 2011 following the recommendation of the Shyamala Gopinath committee.
The scheme, which offered double the money invested in eight years, also provided the option of encashing the amount in two-and-a-half years, unlike the National Savings Certificate (NSC).
“The relaunch of the scheme that offered interest of 8.8 per cent and increase in the ceiling of investment in the public provident fund scheme will encourage more people to invest,” said an official.
For the first time, NSC will be offered with insurance cover, enabling small savers to encash the entire amount before the maturity period. A dedicated savings scheme for girl children is to be started.
Mervin Alexander, postmaster general (Chennai city region), said Chennai contributed to 30 per cent of the 52.58 lakh savings bank accounts in the region.
“Nearly 60 per cent of our revenue comes from the financial services. Last year, Chennai alone earned revenue of Rs. 100 crore through savings schemes,” he said.
Welcoming the Budget announcements, S. Rajpandian, vice-president of Tamil Nadu Postal Agents Welfare Association, said the government must also revoke the committee’s recommendation to slash agents’ commission.
