The fresh mop-up under the scheme breached ₹10,000 crore in April, the first month when the enhanced limit kicked in, compared with the usual deposit of about ₹3,000 crore for this month, the official told ET. He expected such inflows to remain strong in the coming months as well.
The budget for FY24 had raised the deposit limit under the Senior Citizen Savings Scheme to ₹30 lakh from ₹15 lakh. The scheme is fetching an attractive interest of 8.2% in the June quarter, against 8% in the previous three months. The interests are payable every quarter. “We have got a very good report on the first month of the Senior Citizen Savings Scheme (with the revised limit). The response has been very robust,” the official said.
Elevated mop-up under this scheme would prop up collections under the National Small Saving Fund, reducing the pressure on the government to borrow from the market to meet the fiscal deficit target.
Premature Closure Conditional
The government has budgeted ₹4.71 lakh crore from the NSSF in FY24, against the FY23 RE of ₹4.39 lakh crore. The scheme typically has a tenure of five years, with a facility for three-year extension on maturity. Premature closure is allowed, subject to a penalty. The finance ministry has asked banks to swiftly operationalise the Mahila Samman Savings Certificate scheme. “The scheme has already been implemented by post offices and banks are in the process of adopting it,” said the official.
In FY24 budget, FM had announced the Mahila Samman Savings Certificate, a one-time small savings scheme that will be made available up to March 2025. The scheme has a maximum deposit limit of ₹2 lakh at a fixed interest rate of 7.5%, with a partial withdrawal option.
