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Fund Mobilization in Small Saving Schemes: A Critical Review

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  • R Kasilingam
  • G Jayabal

Abstract

Small savings schemes are an important source of revenue for the governments to finance their long-term social and economic projects. The Central Government has designed small savings schemes, not only to mobilize resources to meet requirements of State Governments, but also to provide a safe and attractive option to the public to park their hard-earned money. To attract small investors, the government has provided several incentives for those investing in small savings schemes. Despite such an encouragement, the small savings collection has declined recently. To find out the reasons for such decline, it is necessary to make a critical review of the collections made under different schemes and the role played by the post offices and banks in mobilizing funds for small savings schemes. This paper not only attempts a critical review of the small savings collection, but also suggests measures to make small savings schemes vibrant enough to attract small investors.

Suggested Citation

  • R Kasilingam & G Jayabal, 2009. "Fund Mobilization in Small Saving Schemes: A Critical Review," The IUP Journal of Public Finance, IUP Publications, vol. 0(1), pages 35-52, February.
    • Handle: RePEc:icf:icfjpf:v:07:y:2009:i:1:p:35-52
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