About:- They are the major source of household savings in India and comprise 12 instruments.
- The depositors get an assured interest on their money.
- Collections from all small savings instruments are credited to the National Small Savings Fund (NSSF).
- Small savings have emerged as a key source of financing the government deficit, especially after the Covid-19 pandemic led to a ballooning of the government deficit, necessitating higher need for borrowings.
Classification:
- Small savings instruments can be classified under three heads:
- Postal Deposits (comprising savings account, recurring deposits, time deposits of varying maturities and monthly income scheme).
- Savings Certificates: National Small Savings Certificate (NSC) and Kisan Vikas Patra (KVP).
- Social Security Schemes: Sukanya Samriddhi Scheme, Public Provident Fund (PPF) and Senior Citizens‘ Savings Scheme (SCSS).
