In order to increase mobilization of funds towards the different government backed small savings schemes, government has now allowed in addition to public sector banks, three large private lenders including ICICI, HDFC and Axis bank to offer these schemes to customers. Until now, subscriptions under PPF, Sukanya Samriddhi, SCSS 2004 and KVP 2014 had been allowed. But henceforth deposits under NSC, RD and MIP will be accepted by these banks.

Post offices which were primarily engaged in selling small savings schemes until now will now on going forward shall be sold by banks. As per the recent notification they can sell National Savings Time Deposit Scheme 1981, National Savings (Monthly Income Account) Scheme 1987, National Savings Recurring Deposit Scheme 1981 and NSC VIII issue.

The small savings schemes rates announced on a quarter on quarter basis for the current quarter stand unchanged. These rates are decided based on the bond yield.

Know the rates for different small savings schemes currently on offer, here.

With Input From PTI