Small Savings

(Button) Back to Places of Interest Back to Departments

Contact Person: P.A (Small Savings), Collectorate, Tiruvallur

Small Savings means "SIRU THULI PERU VELLAM". We all know that small savings means to invest small amount every month in Post Office becomes a bigger amount just like the "Bees are collected honey from Flowers". In general some Financial Companies are fixing higher rate of interest for the investments and giving some attractive gifts - but no 'Security' for the total amount invested. But in small savings - Government of India have fixed the moderate rate of interest in Post Offices, 100% safety and security for the amount invested, Nominee facilities, Agents facilities, Insurance facilities and loan facilities are also available.

Every year the Small Savings target is fixed by the Government. At present, the banks are offering higher rate of interest, than the Small Savings Schemes , hence the collection made under Small Savings schemes is very low. The Small Savings target has not been fixed by the Government

The details of Small Savings Collection from April-10 to March-11 is as detailed below

Year

Target

Gross Collection (Rs in Crores)

Net Colletion (Rs in Crores)

April-2010 to March-2011

Not fixed.

525.18

(-) 16.03

Small Savings collection is made through Block Development Officers of the 14 blocks and the Small Savings Agents working in the concerned Panchayat Unions. To achieve the Small Savings target SAS agents, MPKBY agents and PPF agents are appointed by the District Collector.

At present, the banks are offering higher rate of interest, than the Small Savings Schemes , hence the collection made under Small Savings schemes is very low. The Small Savings target has not been fixed by the Government from the financial year 2007-08.

Details of Small Savings Target and Achievement from 1997-98 to 2010-11

Year

Target (Crores)

Gross (Crores)

Net (Crores)

1997-1998

34

30.00

21.00

1998-1999

60

89.23

51.00

1999-2000

72

93.07

75.00

2000-2001

72

140.50

79.00

2001-2002

108

151.36

65.97

2002-2003

108

213.98

112.65

2003-2004

130

291.97

143.12

2004-2005

160

365.56

188.47

2005-2006

180

400.19

185.47

2006-2007

200

301.80

49.88

2007-2008

-

191.87

(-)83.07
2008-2009

-

304.18

(-)74.83
2009-2010

-

446.43

(-)25.49
2010-2011

-

525.18

(-)16.03

At present 588 Small Savings Agents are working in Tiruvallur District. They are collecting money from the investors and deposits are made through 150 Sub Post Offices and Branch Post Offices coming under the control of Tiruvallur, Alwar Thirunagar, Ambattur and Avadi Camp Head Post Offices. The PPF deposits are being made in Post Offices and in the Banks. The total collections made in the Post Offices, major deposits are done through Agents and the direct deposits are very few.

For Small Savings deposits Government of India is giving Commission amount for the deposits made through the Agents, and the State Government is giving Incentive as detailed below, for the financial year 2010-11 the Government extended the payment of Agents Incentives as detailed below.

Sno

Type of Agency

Commission

Incentive

1

SAS

1%

%

2

MPKBY

4%

2%

01-05-2000 onwards, the Agency Commission is paid across the counter at the Post Offices where deposits are receivedfrom the Agents. Based on the Commission paid Certificate given by the concerned Post Masters, the incentive claims are received for the payment of agents incentive from the Deputy Block Development Officers (Small Savings) after verification with Postal records. After getting sanction from the Collector, the bills are sent to the Treasury. Finally incentive amount is credited into the concerned SB accounts of the Agents maintained at SBI Branches at Tiruvallur District through ECS

The details of payment of Agents Incentive claim

Year

Incentive Amount

1997-1998

1655722

1998-1999

6740616

1999-2000

4981364

2000-2001

7557103

2001-2002

11999785

2002-2003

10999734

2003-2004

14099818

2004-2005

20999822

2005-2006

29999511

2006-2007

12499983

2007 - 2008

9998011

2008 2009

9999764

2009 2010

15198596

Exhibitions

Exhibitions are conducted during festival seasons (Viz) Audi Krithigai festival @ Tiruttani, Bhavaniamman Tiruvizha @ Periyapalayam, in which the salient features of the Small Savings Scheme pamphlets are distributed to the to the public by telecasting HDD Films in which Small Savings Schemes/features of the scheme are explained to the general public/prospective investors.

The HDD films are displayed regularly every week during Grievance Day Petition Meetings conducted by the District Collector. HDD films are also displayed during Small Savings periodical campaigns/Mass contact Programmes.

Prizes and Awards

Every year to encourage Small Savings collection Prizes and awards are given to the best Small Savings Agents(MPKBY), PRSS Group Leaders who deposit highest amount in RD account. Such Prizes/awards are given at district level /block level. Based on the allotment from the directorate, the Prizes/awards are given with the consent of the District Collector. During the year 2009-10 Prizes and Awards were given to 66 persons on 21.02.10.

The strategies as detailed below are scrupulously followed to mobilize small savings collection

bullet

The Tax payers are motivated through the agents to deposit their funds in tax rebate savings scheme like NSC,PPF etc.,

bullet

In High School and Higher Secondary School, to inculcate the habit of Small Savings, all Students studying from VIth Std., onwards are encouraged to enroll under Post Office Recurring Deposit Scheme with a minimum deposit of Rs.10 Per month, by appointing one of their staff as an MPKBY agent.

bullet

The staff working in government/private institutions are encouraged to enroll in Pay Roll Savings Scheme.

bullet

During Small Savings rural campaign the members of the each households are encouraged to open an RD account