‘Pay Roll Savings Day’ observed by NSI, Department of Small Savings
CHENNAI: In a bid to attract more deposits in government small savings schemes, steps would be taken to increase the rate of interest on par with those offered by the banks, A.Rahman Khan, vice-chairman, State Advisory Board for National Savings, said at a function here on Thursday.
Participating in the ‘Pay Roll Savings Day’ celebrations organised by National Savings Institute (NSI) and the Department of Small Savings, he said that the government savings schemes faced tough competition from private players that promised huge rate of interest. At present, the interest rate provided to customers of savings schemes was one per cent lesser than that offered by banks.
Measures would be taken to attract more investors by increasing the rate of interest on and also offer short term deposit schemes, he said.
Highlighting the benefits of pay roll savings, Mr.Khan said awareness must be created among the salaried people in various sectors to save money by voluntarily authorising the employer to deduct an amount from monthly salary. They may also invest in public provident fund and national savings certificate.
Mr.Khan later presented the Model Pay Roll Savings Group award for 2007-08 to Arindam Kunar, general manager, Hotel Taj Coromandel.
Deputy Commissioner of NSI, S.K.Tripathi, highlighted the significance of NSI and pay roll savings. He said NSI managed a corpus of Rs.7 lakh crore collected through postal departments and 10,000 bank branches across the country. This is in turn invested in various development activities of the country.
It had set a mobilisation target of Rs.1.6 lakh crore in the current year through rural savings campaign, Mr.Tripathi added.
Regional director of NSI, Chennai, T.Dasari, said the pay roll savings scheme was carried out through post offices. At present pay roll savings groups are functioning in various public and private sectors across the State. Last year, nearly Rs.125 crore was collected as savings from the investors through various schemes. About 100 employees of Hotel Taj Coromandel contributed towards the monthly pay roll savings since 1980s, he said. Postmaster-general (Mail and Marketing) K.Ramachandran and senior superintendent of post offices, Chennai central division R.Venkataraman participated in the programme.