Small savings schemes are a preferred investment option for conservative investors due to their assured returns, tax benefits, and government’s guarantee. However, many different schemes have come up over the years, under many different rules and Acts.
In order to overcome discrepancies due to this, Government of India has proposed to merge the Government Savings Certificates Act, 1959 (which covers National Savings Certificates and Kisan Vikas Patra) and the Public Provident Fund (PPF) Act, 1968, with the Government Savings Banks (GSB) Act, 1873.
GSB Act covers Post Office Savings Bank, and banking companies or any other company or institution that the central government may include in this Act.
A press release from the Ministry of Finance says that relevant provisions under the various existing Acts would be subsumed in the amended Act.
