Eldely need relief on small savings schemes, these schemes matter a lot for them.

Eldely need relief on small savings schemes, these schemes matter a lot for them

 Recently, the central government withdrew the reduction in interest rates payable on small savings schemes. But in the next quarter, the government can take such a decision again. If this happens, it will have the greatest impact on the elderly living in rural areas. The rural elders still invest in these schemes and make a living from its interest income. 

The SBI has published a study report on this entire system, stating that the government should take steps to make small savings schemes attractive in view of the increasing population of the elderly in the country. In the year 2011, the share of the elderly in the country's population was 8.6 percent, which is expected to increase to 15.9 percent by the year 2041.

The SBI report says that in states where per capita income is high, less people invest in post office savings schemes. But in Bengal, Bihar and Uttar Pradesh, these schemes are the first choice of investment for people above 60 years of age.

The number of senior citizens in the total population of Maharashtra is 11.5 percent. But he has only Rs 37,937 crore deposited in the post office. On the other hand, 11.1 percent of the total population of Bengal is elderly and they have deposited Rs 77,696 crore in these schemes.

60,156 crore rupees is collected in the post office of the elders, who hold only 7.9 percent of the population of Uttar Pradesh. In states with low per capita income, such as Rajasthan and Bihar, a large amount is kept in savings schemes run through the post office.

SBI has made three suggestions to make small savings schemes attractive. First, interest on deposit schemes for senior citizens should be fully tax-free. Now the entire amount of interest is taxed.

SBI says that Rs 73,275 crore has been deposited in these schemes and there will be no major burden on the government by giving tax exemption on them. Second, the system of paying interest according to age should be implemented. At present, there is a system of giving more interest to the elderly, but many categories can be made in it so that more interest is ensured on getting more age. The third suggestion is that the lock-in period of minimum 15 years in PPF should be abolished.