Comparative Analysis of Fund Collection under Small Saving Schemes by Commercial Banks and Post Offices on the basis of Selected Schemes
The other name for savings in India is “Provision for future”, in context to this the history of savings banks with legal framework of government is for 130 years which began from 1834, when the first savings bank was established in Calcutta . In addition to the savings movement of 1834 , National savings Organisation now National Savings Institute was created in 1948 with an intention to inculcate the habit of savings among all the people of our country. The participants of savings were the rich group and therefore to bring all the participants from every corner of our country the small savings schemes were introduced where the savings can began with minimal amount. The small savings schemes were introduced initially only with the post office but slowly and gradually some of the commercial banks were allowed to include some of the savings schemes in their service providing list. The reason was to give access to maximum number of participants. Small savings are very popular in India as people prefer investing in instruments which are backed by Government as these instruments provide guaranteed assurance to the investor. The objective of the paper is to understand the role of NSI(National Savings Institute) and the fund collections made by both commercial banks and post offices taking four schemes which are allowed to operate in both post offices and commercial banks so that comparison is made to understand the amount of funds collected scheme wise as the rate of interest is same in both the institutions. The results are concluded by taking whether the access to people is more towards post office or in commercial banks also preference of people towards the schemes.
Keywords - National Savings Institute, Senior Citizens Savings Scheme, Sukanya Samridhi Accounts, Public Provident Fund and Kisan Vikas Patra, Gross and net values.