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The Indian government has come up with new hikes in the interest rate on small savings schemes including public provident fund or PPF and also on Kisan Vikas Patra or KVP. The interest rate of PPF has been altered to 8% interest rate for the October to December quarter, up from 7.6% in the current quarter. On the other hand, for the KVP, the interest rate has been taken to 7.7% from 7.3% in the current quarter. This means that KVP will now mature or double in 118 months as compared to 112 months earlier. The announcement regarding the change in these interest rates was made by the finance ministry today. The interest rate on small savings schemes, which are benchmarked to yields on government bonds, are revised on a quarterly basis. With the 10-year benchmark yield now above 8%, many...

In order to encourage savings, the government has allowed banks, including top three private sector lenders, to accept deposits under various small savings schemes like National Savings Certificate (NSC), recurring deposits and monthly income plan. Until now, most of the small savings schemes were sold through post offices. According to a recent government notification, banks can also sell National Savings Time Deposit Scheme 1981, National Savings (Monthly Income Account) Scheme 1987, National Savings Recurring Deposit Scheme 1981 and NSC VIII issue. As per the notification, all public sector banks and top three in the private sector -- ICICI Bank, HDFC Bank and Axis Bank -- to receive subscription from the expanded portfolios. So far, these banks were allowed to receive subsc...

Tag: NSC

Indian Government Hikes the Interest Rate of Small Savings Schemes

Indian Govt Permits Banks To Sell More Small Savings Schemes