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Introduction of Post Office Savings Banks

Introduction of Post Office Savings Banks

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Published by Neha Gupta

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Published by: Neha Gupta on Jun 02, 2011
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The scheme of District Savings Bank was drawn up and circulated to local governments and administrations on 27-7-1868 and on 16-5-1870 all the local Governments announced the establishment of District Savings banks. On 1-4-1882 the Post Office savings Banks (POSBs) were opened all over India except in the Presidency of Bombay where The Presidency bank had privileges which it was unwilling to forego.

27. In the Presidency of Madras the opening was limited to certain places and in Bengal no POSB was established in Calcutta and Howrah. the Post Office had 39.129 accounts with a balance of Rs.  At the end of 1882.  The District Savings Banks were also allowed to function until the POSB established itself firmly.  The immediate result was addition of 4066 POSBs to the 197 Districts savings Banks and Railways and the regimental banks.796 .96. .

31.24.972 were transferred from the Districts savings banks to POSBs.699 accounts representing Rs. . ‡ The Government of India in their resolution No. 1.13. 33 dated 4-1-1886 decided that the District and POSBs should be amalgamated with the Post Office organization being more widely spread and more convenient for the Public than the Treasury System. ‡ As a result of the merger.AMALGAMATION OF DISTRICTS SAVINGS BANKS WITH POSBs.

. namely. Government of India.‡ In order to promote small savings schemes a new organizations. National Savings Institute replacing the existing National Savings Organization has been set up under the control of Ministry of Finance.

The states are too interested in savings because 100% of the net collection in a State in small savings are given to that State by the Central Government in the shape of loans. ‡ State governments also have their own organizations to supplement the efforts of the National Savings Institute. .THE MAIN FUNCTIONS OF THE INSTITUTE ‡ To promote small savings movements in all possible ways to arrange publicity of various savings schemes and mopping up as much savings as possible through authorized agents or other voluntary workers.

000 are in the rural sector serving the simple banking needs of the hitherto neglected rural population.30.000 branches throughout India out of which 1. ‡ Since the first five year plan.54. . the POSB has become a medium of mobilizing large sources running into hundreds of crores every year for planned projects.ROLE OF POST OFFICE SAVINGS BANK ‡ It has about 1. From the restricted objective a facility to the public to deposit their savings. the role of POSB has gone a radical change.

. the expectations of the performance of the POSB have gone up very high both in the minds of those connected with small savings and the general public.‡ As a result of the change in the role.

‡ Savings Accounts ‡ Time Deposits Accounts ‡ ‡ ‡ ‡ ‡ .THE GOVERNMENT HAS INTRODUCED SEVERAL AGENCY SYSTEMS Standardised Agency System Mahila Pradhan Kshetriya Bachat Yojna Public Provident Fund Agency System Pay Roll Savings Scheme Incentive Schemes for Extra Departmental Sub and Branch Postmasters.

Thus the POSB provides much relief to the pensioners who had to wait long either at the treasury or in the post office to receive their pension on the first of the every month. ‡ A scheme of payment of pension to freedom fighters through POSB has been introduced w.e.f. These measures will also result individually in boosting the small savings among this category of public.‡ It has taken over the payment of pension to the Railway Pensioners by the automatic credit of their pension in their Post Office Savings (Pension) Account. ‡ The Scheme has also been extended to the P&T pensioners. . 1-4-1983.

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