The Hindu : Tamil Nadu / Chennai News : Small savings can go a long way to ensure a secure life

Online edition of India's National Newspaper
Monday, Aug 01, 2005

Tamil Nadu

Tamil Nadu - Chennai

Small savings can go a long way to ensure a secure life

Staff Reporter

Savings go to the Centre, which allocates funds to States: Official `People prefer postal savings schemes as they are reliable"

CHENNAI: On Wednesday, the Chennai regional centre of the National Savings Institute and the Department of Small Savings honoured the State/Central government departments that motivated their staff to save.

A majority of those who invested in small savings were women: some had 60 accounts that matured every month fetching handsome returns.

A lot of people prefer postal savings schemes as they are reliable, says B. Selvakumar, Director of Postal Services, Chennai. While the Recurring Deposit (RD) sector grows at an annual rate of 12 per cent, the growth of the monthly income scheme is 30 per cent. But there was potential, he said.

The money deposited in savings goes to the Central Government, which allocates funds to the State for development activities.

For every person who saves from his monthly income there are four others who do not, according to T. Murthy, Commissioner of Small Savings.

Awards presented

At the awards presentation to the Model Pay Roll Savings Group for 2004-05, Mr. Murthy said Chennai should exploit employment opportunities to increase savings.

Stressing the importance of saving, Mr. Murthy said the money saved in organisations such as post offices was used to improve industry and fuel scientific research. While in Japan, a person saves 30 per cent of his income in India it is only 26 per cent.

Last year alone, 13-lakh accounts were opened in Tamil Nadu in the five-year recurring deposit scheme.

The Pay Roll Savings Group of the Tamil Nadu Public Service Commission, Anna Salai, was chosen as the model group for 2004-05.

It has a monthly collection of Rs. 1 lakh. Its 474 employees have 641 RD accounts in the post office.

The Joint Office of Southern Railway in Ayanavaram with 300 employees maintains 400 RDs and their monthly savings is Rs. 44,000.

The Metropolitan Transport Corporation of Ayanavaram has 550 employees, of whom 313 workers save under the five-year RD scheme and their monthly savings is Rs. 75,000.

Of the 980 employees in Chennai Corporation in Rippon Buildings, 741 employees have RDs and their monthly savings is Rs. 77,000.

Yasmin Ahamed, Chairperson, Tamil Nadu Public Service Commission, received the rolling shield on behalf of her department. K. Srinivasa Raghavan, station director of All India Radio, participated.

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