ICICI, Axis, HDFC Banks can now offer more small savings schemes

To ensure that it meets its budgeted collections under the small savings schemes, the government has allowed three private sector banks -ICICI Bank, HDFC Bank and Axis Bank -along with all the public sector banks to accept deposits under schemes like the National Savings Certificate (NSC), Kisan Vikash Patra (KVP) and Monthly Income Scheme (MIS), among others.

These investment products come under the government's National Savings Time Deposit Scheme, for which currently post offices are the government's main agents. Through a notification on October 10, the finance ministry authorised these banks to receive subscriptions under the National Savings Time Deposit Scheme, 1981.

Once systems are put in place, these banks will receive investors' money under NSC, KVP , MIS (popularly called post office MIS), etc. Post offices will continue to take money from investors under these schemes and savings options.

In the Budget for fiscal 2018, the government had estimated to collect about Rs 1 lakh crore from its various small savings schemes. In the first five months, about Rs 40,000 crore has been collected, a top finance ministry official said recently.