Small Savings Schemes grow 13.8% led by Sukanya Samriddhi, Senior Citizen’s Scheme

Current Context: According to recent data from the Reserve Bank of India (RBI), small savings schemes have grown by 13.8% up to February 2024, reaching a total of ₹18.1 lakh crore.

• This growth has been significantly driven by the Sukanya Samriddhi Yojana (SSY) and the Senior Citizens Savings Scheme (SCSS).
• Here are some key points:
• Sukanya Samriddhi Yojana (SSY) saw a remarkable 41% growth, with the outstanding balance rising from ₹77,472 crore in February 2023 to ₹1 lakh crore in February 2024.
• Senior Citizens Savings Scheme (SCSS) recorded a 28% growth, with its outstanding balance increasing from ₹1.3 lakh crore to ₹1.7 lakh crore during the same period.
• Other small savings schemes, including Post Office Savings Scheme and Post Office Recurring Deposits, also showed growth between 9% and 11%.
• These schemes are designed to promote saving habits among citizens and help finance government expenditure.
• The interest rates for these schemes are notified quarterly by the government and are linked to government bond yields.

Question:

1 Small savings schemes are particularly important for financing which of the following?

• A) Private sector projects
• B) Foreign investments
• C) Corporate bonds
• D) Government expenditure

Answer: D) Small savings schemes are designed to promote savings among citizens and are used to finance government expenditure.