The Hindu : Tamil Nadu / Chennai News : Steps to tone up small savings schemes

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Thursday, Aug 14, 2008
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Tamil Nadu

Tamil Nadu - Chennai

Steps to tone up small savings schemes

Staff Reporter

Outstanding small savings agents felicitated for their best performance

Photo: S.R.Raghunathan

Well done: A.Rahman Khan, vice-chairman, State Advisory Board for National Savings, interacts with leading small savings agents at the Secretariat on Wednesday. Director of Small Savings P.Ilango is in the picture. —

CHENNAI: The relatively higher rate of interest offered by banks on deposits is making more and more people switch over from the small savings schemes of the government. Mobilisation under the schemes is also on the decline over the past three years.

In a bid to attract more depositors to the small savings schemes, measures are afoot to increase the rate of interest on a par with those offered by the banks, according to A.Rahman Khan, vice-chairman, State Advisory Board for National Savings.

Speaking at a function here on Wednesday, in which outstanding small savings agents were felicitated, he said the number of withdrawals from the schemes was on the increase over the past few years. The recent boom witnessed in the stock market was also one of the reasons.

In Chennai, mobilisation under the schemes has come down from nearly Rs.3,478 crore in 2005-06 to Rs.2,983 crore in 2006-07 to Rs.1,901 crore last fiscal. The collection in the current fiscal till June was Rs.428 crore, he said.

Noting that the schemes were facing tough competition from banks and other financial institutions, he said the agents had a major role in highlighting the benefits of investing in the schemes and increasing the mobilisation. The demands of those associated with the small savings schemes, including increasing the incentives of the agents and the need to launch short-term schemes, have been forwarded to the State government. It would be also discussed with the Centre, Mr.Khan said.

The shield for best performance, of T.Nagar Head post office, was received by Chennai City Central Division Senior Superintendent of Post Offices R.Venkataraman. Three leading women small savings agents in Chennai district — T.Saraswathy from T.Nagar, V.Mamta Golacha from Kellys and H.Meera Bai from Sowcarpet — were also felicitated. Similarly, Payroll Savings group leader and ICF’s chief staff and welfare inspector S.Sriramulu was awarded at the function.

Mr.Khan said that of the 50,000 agents across Tamil Nadu, 30,000 were women. The agents across Tamil Nadu had contributed to the small savings collection of about Rs.1,760 crore last year. In Chennai, there are about 2,000 agents.

Mr.Khan said review meetings were being conducted in various districts. In Chennai, monthly meetings for agents were being conducted to redress their grievances and train them to meet the target. Director of Small Savings P.Ilango participated in the function held at the Secretariat.

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