Panel seeks raising PPF limit, wants Kvps to go

A committee set up to looking into the operations and interest rate structure of small savings has recommended a slew of changes in administration of existing schemes including the discontinuation of Kisan Vikas Patras (KVPs).

A committee set up to looking into the operations and interest rate structure of small savings has recommended a slew of changes in administration of existing schemes including the discontinuation of Kisan Vikas Patras (KVPs).

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The committee, headed by Reserve Bank of India deputy governor Shyamala Gopinath, has also recommended reduction of the maturity period of monthly income scheme and National Saving Certificate (NSC) from six to five years.

It has also recommended an upward revision of the annual ceiling in public provident fund (PPF) from Rs 70,000 to Rs 1 lakh, favoured raising interest rates in post office saving account from 3.5% to 4% and benchmarking of interest rates on other small savings schemes to rates of government bonds of similar maturity. It has recommended abolition of payment of commission to agents on PPF and senior citizens' savings scheme.