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Net collections under small savings schemes such as National Savings Certificate (NSC) and Public Provident Fund (PPF) dipped for the first time in 11 years in the last fiscal year (FY23).
Net small savings collections (deposits minus withdrawals by the subscribers) in FY23 stood at Rs 3.04 trillion, witnessing a decline of 8.5 per cent from Rs 3.33 trillion in FY22.
The top 5 states with the highest net collections in FY23 were West Bengal, Maharashtra, Uttar Pradesh, Tamil Nadu, and Karnataka.
States and union territories (UTs) with an increase in net collections were Bihar, Assam, Arunachal Pradesh, Chhattisgarh, Puducherry, Telangana, Mizoram, and Himachal Pradesh. All other states and UTs, except Dadra and Nagar Haveli, witnessed a decline in net collections.
All deposits under small savings schemes are credited to the ‘National Small Savings Fund’ (NSSF), established in the Public Account of India with effect from April 1, 1999.
The dip comes despite the Finance Ministry sharply raising small savings rates for the March quarter of FY23. Small savings deposit rates for one year, two years, and three years were raised by 110 basis points to 6.6 per cent, 6.8 per cent and 6.9 per cent, respectively, for Q4FY23.
First Published: Aug 04 2023 | 11:33 PM IST