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Safeguards necessary for senior citizens

Kashmir Times. Dated: 6/19/2018 10:55:30 AM

Dear Editor,
Latest data released by Reserve Bank of India (RBI) shows a sharp decline in small savings in first eight months of financial year 2017-18 when small savings schemes amounted to just rupees 40,429 crore, a seven-fold dip from Rs 2,75,682 crore in the corresponding period of the previous year. Evidently it is at cost of more investment in mutual-fund schemes where political and other factors can suddenly harm the investors like happened in investment in properties.
A sharp decline in interest-rate was anticipated post-demonetisation when Jeevan Akshay pension-plan of LIC of India for the reason witnessed maximum investment in that period. But with currency-circulation crossing what it was before demonetisation, fall in interest-rate is not appreciable with interest-rates of RBI bonds revised from earlier 8 to 7.75 percent. In such a scenario, two government-savings-schemes designed for senior citizens with a capping of rupees 15 lakhs each namely Pradhan Mantri Vaya Vandana Scheme by LIC of India, and senior-citizens-savings schemes now extended in banks also apart from post-offices with 8-percent annual interest need some liberalisation. Rather both these schemes should be clubbed with total capping increased to rupees 50 lakhs per individual. Interest for these schemes should be auto-credited on monthly basis without tax-deducted-at-source (TDS). Moreover investment in Pradhan Mantri Vaya Vandana Scheme by LIC of India should also be exempted under section 80-C of Income Tax Act. Since investments in Public Provident Fund (PPF) has also witnessed sharp decline, interest-rate in PPF should be revived again at 8-percent.
—Subhash Chandra Agrawal,
1775 Kucha Lattushah
Dariba, Chandni Chowk Delhi.