Savings has an important place in the mobilization of resources for development expenditure because the investors would not only get back their money ,but also some interest and they would therefore prefer to lend money in this way instead of paying it as outright tax. Further in a developing economy in which there will be always surplus money available with some sectors to the extent that the savings are tapped the money available for circulation is taken away and to that extent pressure on prices and inflationary trend is reduced. So therefore savings have got a very important role to play in the sphere of economy.
Various saving schemes framed by Central Government under:
Government Savings Bank Act, 1873.
Government Saving Certificates Act, 1959.
Public Provident Fund Act, 1968.
Features Of Saving Schemes In India
Risk Free Investment as Small Savings Schemes are fully secured by GOVT.OF INDIA.
Higher rate of interest.
Invest Rs. 5000/- or more in any Small Savings Scheme(except Savings Bank a/c and DSRGE) to get Lucky Coupon and Win fabulous prizes. Tax on these prizes will be paid by the State Govt.
Amount invested will be utilized for the development of the state.
Govt. authorized Small Savings Agents are providing home service to all the depositors of these schemes.