RBI ask banks to provide new interest rates on PPF, SCSS

According to a central bank circular, the rates of interest on PPF 1968 and SCSS 2004 will be 8.8% and 9.3% respectively from 1 April 2012. The new rates would be applicable during this fiscal

The Reserve Bank of India directed the banks to provide the higher interest rates on Public Provident Fund (PPF) and senior citizens savings scheme (SCSS) from 1 April 2012 as announced by the government.

According to a central bank circular, the rates of interest on PPF 1968 and SCSS 2004 will be 8.8% and 9.3% respectively from 1 April 2012. The new rates would be applicable during this fiscal.

Last month, the government had decided to increase the interest rate on PPF by 0.2% to 8.8%. The rate for SCSS has been hiked to 9.3% from 9%. RBI has also asked the bank to display the new rates for the two small saving schemes on their notice boards for the information of subscribers.

The government had earlier raised annual investment ceiling in PPF savings to Rs1 lakh from Rs70,000. The hike in interest rates on small savings schemes is based on the recommendations of the Shyamala Gopinath Committee which had suggested linking of interest rates on small savings with that of the market. The panel had also suggested that the interest rates on small savings schemes should be revised annually.

The revision in the interest rates will help in maintaining the attractiveness of the small savings schemes vis-a-vis fixed deposit schemes operated by banks. The government as part of economic liberalisation process had freed the interest rates on banks deposits giving freedom to lenders to fix rates depending upon the asset-liability position, but continued to fix rates for small savings schemes.

User

COMMENTS

Ramachandran

5 years ago

Is the enhanced interest rate of 9.3% for the SCSS scheme applicable for existing customers?

Ramachandran

5 years ago

Is the new interest rate applicable to existing customers of SCSS scheme?

SBI Life Annuity Plus: Competitive annuity

SBI Life Annuity Plus is a competitive immediate annuity product. Immediate annuity plans...

Premium Content
Monthly Digital Access

Subscribe

Already A Subscriber?
Login
Yearly Digital+Print Access

Subscribe

Moneylife Magazine Subscriber or MSSN member?
Login

Yearly Subscriber Login

Enter the mail id that you want to use & click on Go. We will send you a link to your email for verficiation
Brazil, India top business confidence index: Report

Business confidence in Brazil has reached 148 points in March followed by India 143 points

Amid Eurozone crisis and uncertain economic climate, emerging economies of Brazil and India have topped the business confidence index, confirming their role as key drivers of the global economy, says a Regus report.

The global Business Confidence Index is based on a survey of views on revenue, profit trends and expected growth.

According to the latest bi-annual Regus Business Confidence Index (BCI) report which tracks the opinions of over 16,000 business managers and owners from 86 countries, business confidence in Brazil has reached 148 points in March followed by India 143 points. The benchmark average is set at 100 to indicate a neutral outlook.

However, businesses confidence in India has dipped by 2 index points from September 2011 to 143 in March this year, while during the same period Brazil witnessed a rise of 2 points to 148.

At the other extreme is Japan which at 82 points appears to be still suffering from the March 2011 disasters. The global average for the index in the latest report stands at 113, just down one point from the previous report released in September 2011.

For India, the report said, a further mark of optimism is that companies reporting revenue growth increased, reaching 69% compared to 52% six months ago.

However, the companies reporting profit growth stood at 58%, suffering a 1% squeeze.

“Although untouched by the significant setback between March and September 2011 suffered by other global economies, Indian business confidence has now suffered a slight dip.

“In spite of this, the proportion of companies reporting revenue growth has grown although there is a small squeeze in those reporting profits,” Regus regional vice president (South Asia) Madhusudan Thakur said.

“However, in order to grasp the growth opportunities in a sustainable way, businesses globally are still looking to cut overheads without damaging their growth prospects,” he added.

The report noted, “emerging economies such as Brazil (148), India (143) and China (130) remain the highest scorers, Germany also confirms its place as third most confident nation at 132 in spite of a negative variation on September 2011.”

Among other countries, the United States rose 15 points to score a 105, while Mexico and South Africa were up seven points and two points respectively at 109 and 117, while UK was down one point to 113.

The report said revenue growth at global level remains the same at 51% in March 2012 compared to six months ago. Nevertheless, 75% of respondents expect revenue growth in the next six months.

User

We are listening!

Solve the equation and enter in the Captcha field.
  Loading...
Close

To continue


Please
Sign Up or Sign In
with

Email
Close

To continue


Please
Sign Up or Sign In
with

Email

BUY NOW

The Scam
24 Year Of The Scam: The Perennial Bestseller, reads like a Thriller!
Moneylife Magazine
Fiercely independent and pro-consumer information on personal finance
Stockletters in 3 Flavours
Outstanding research that beats mutual funds year after year
MAS: Complete Online Financial Advisory
(Includes Moneylife Magazine and Lion Stockletter)