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Committee to Review NSSF Structure

The Indian Government following the recommendation of the Thirteenth Finance Commission recently set up a committee headed by Shyamala Gopinath, Deputy Governor of the Reserve Bank of India for comprehensive review of the National Small Savings Fund (NSSF) structure, interest rates, tenor and other administrative matters. The Committee is permitted to refer to the existing parameters for the small saving schemes in operation. It is expected to recommend mechanisms to make them more flexible and market linked.

Oct 13, 2010 13:01 IST

The Indian Government following the recommendation of the Thirteenth Finance Commission recently set up a committee headed by Shyamala Gopinath, Deputy Governor of the Reserve Bank of India for comprehensive review of the National Small Savings Fund (NSSF) structure, interest rates, tenor and other administrative matters. The Committee is permitted to refer to the existing parameters for the small saving schemes in operation. It is expected to recommend mechanisms to make them more flexible and market linked. The committee would also review the existing terms on which loans are extended from the NSSF to the Centre and States and then recommend the necessary changes required in the arrangement of lending the net collection of small savings to Centre and States.  The government asked the committee to review other investment opportunities for the collected money from small savings. It would also have to review administrative arrangement including the cost of operation and the incentives offered by the states on small savings investment. Besides, the committee is also expected to suggest repayment proceeds of NSSF loans extended to States and Centre.