Chapter on Finance

UPSC Prelims 2025 Notes

 SMALL SAVINGS SCHEME

The Small Savings Schemes currently in force are:

  1. Post Office Savings Account,
  2. Post Office Time Deposits (1,2,3 8: 5 years),
  3. Post Office Recurring Deposits,
  4. Post Office Monthly Account,
  5. Senior Citizens Savings Scheme,
  6. National Savings Certificate (VIII issue),
  7. National Savings Certificate (IX Issue)
  8. Public Provident Fund
  • The gross deposits under various small savings schemes during 2013-14 (upto January, 2014) were 184575.01 crore.
  • In order to account for all the monetary transactions under small savings schemes of the Central Government under one umbrella, ‘National Small Savings Fund’ (NSSF) was set up in the Public Account of Indiae.f. 1st April, 1999.
  • The net accretions under the small savings schemes are invested in the special securities of various States/Union Territories (with legislature) / Central Governments.
  • The minimum obligation of States to borrow from the National Small Savings Fund (NSSF) was brought down from 100% to 50% of net collections in 2012.

‘RAJIV GANDHI EQUITY SAVINGS SCHEME’

  • Government on 23rd November 2012 notified a new tax saving scheme called ‘Rajiv Gandhi Equity Savings Scheme’ (RGESS), exclusively for the first time retail investors in securities market.
  • The Scheme was launched in February, 2013 and is implemented through depositories.
  • RGESS has been further liberalized in 2013-14 to enable the first time investor to invest in listed mutual funds and equity for three successive years, instead of the present provision of one year.
  • The income limit applicable for RGESS beneficiaries has been raised from Rs.10 lakh to 12 lakh.

 WORLD BANK GROUP

  • The World Bank is among the world’s leading development institutions with a mission to fight poverty and improve living standards for people in the developing world by promoting sustainable development through loans, guarantees, risk management products, and (non-ending) analytic and advisory services.
  • The World Bank is one of the United Nations’ specialized agencies.
  • The World Bank concentrates its efforts on reaching the Millennium Development Goals aimed at sustainable poverty reduction.
  • India is a member of four institutions of the World Bank Group,
  1. International Bank for Reconstruction and Development (IBRD)
  2. International Development Association (IDA)
  3. International Finance Corporation (IFC)
  4. Multilateral Investment Guarantee Agency (MIGA)

India has been accessing funds from the World Bank (mainly through IBRD and IDA) for various developmental projects.

Current Affairs for IAS Exam