The Hindu : Front Page : Treasury deposit interest rates go up

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Tuesday, Dec 07, 2010
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Treasury deposit interest rates go up

Staff Reporter

T.M. Thomas Isaac says Rs.120 crore has been sanctioned for 103 treasury buildings.

ALAPPUZHA: An across-the-board interest rate hike of 0.5 per cent will be effected for all treasury fixed deposits, Finance Minister T.M. Thomas Isaac has said.

Speaking after conducting the State-level launch of distribution of computers and other information technology facilities for treasuries as part of the department's basic infrastructure development programme here on Monday, Dr. Isaac said major fixed deposits of Rs.10 crore and above would fetch an additional interest of 0.25 per cent apart from the general hike of 0.5 per cent.

Accordingly, three-year fixed deposits in the State Treasury would fetch an interest of 11.5 per cent, while deposits by senior citizens would get 12 per cent for the same duration. Deposits for a period of two to three years would now fetch an interest of 11 per cent, while those for one to two years would get 10.5 per cent.

The Minister said Rs.120 crore had been sanctioned for the construction of 103 treasury buildings. The renovation work on 114 existing treasury buildings would be completed by February 2011.

The treasury savings bank reforms would include the introduction of core banking system as well, he said.

Announcing that the mandatory permission from the Pension Sanctioning Authority would henceforth not be required for pension reforms from 2002 to 2004, the Minister said these cases would be dealt with in the treasuries themselves. About 50,000 pensioners would benefit from this move.

The Treasury Department would observe Customer Day on January 15 every year, he said.

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