By News Room
– Prahlad Sabnani
It is the Sanatani Sanskar which teaches the citizens of India to make small savings. According to Indian traditions, our elders develop the tendency to save in us from childhood itself by saying that in the future, there is great support for the savings made in the old times. In Indian families, the housewives know the maths of saving even a small amount out of the amount provided to them for household expenses, and when the time comes, they instill a sense of satisfaction by handing over the said savings to their family members.
In today’s economic era, it is not enough to earn money only, but it is also necessary to invest some part of the earned money in the form of savings at the right place. If the money earned is not invested in the form of savings, then the market value of that amount becomes zero in the future, reducing due to inflation. Therefore, there must be such an income on the amount invested in the form of savings that it should be more than the rate of inflation so that the market value of the amount of savings can be maintained at least that much. That is, money should know how to earn money.
The Government of India and the Reserve Bank of India continue to make efforts with a view that the citizens of the country should increase their savings so that they and their children and other family members’ economic future, children’s education and health etc. can be made secure. Mainly due to this reason, from time to time, the rates of interest on its various savings schemes are increased or decreased by the Central Government keeping in mind the rate of inflation. In recent times, the central government has increased the interest rates on its various savings schemes. The various small savings schemes run by the Department of Posts of the Central Government, on which the interest rates have been increased, are – Post Office Savings Account, 5-year Post Office Recurring Deposit, Post Office Monthly Income Scheme, Senior Citizen Savings Scheme, National Savings Certificate, Kisan Vikas Patra, Sukanya Samriddhi Yojana, 15-year PPF Account, Mahila Samman Savings Certificate, PM Care for Children Scheme.
In India, savings are considered hard-earned money anyway. Therefore, it should be invested wisely. Firstly, it should be a safe investment, secondly, there should be continuous income on this investment. Yes, one should not be greedy in terms of high return on investment, otherwise the amount invested gets sunk. There is a very fine difference between greed and profit. Thirdly, the amount invested should be easy to get back when required i.e. the condition of liquidity should be maintained. Investment in the said small savings schemes of the Central Government is absolutely safe, income is earned continuously on this investment and the liquidity position also remains. Yes, in some schemes there is a lock-in period and the amount of savings can be withdrawn only after the end of this period.
At present, financial literacy has increased among the citizens of India, due to which they invest their savings in fixed deposit schemes in banks as well as in mutual funds and capital market (share market) with a view to earn more income on their savings. Have started investing their savings. There is definitely some risk on investing the amount of savings in these areas, but comparatively the income becomes good. Awareness among citizens is increasing in this regard. They have started investing their savings in various schemes. Savings should also be done in different schemes so that if one scheme fails due to any reason then your money is safe in other schemes. Mutual funds should also be issued by different types and different financial institutions, so that if there is an economic problem in any one financial institution, then the entire money of the citizens does not get drowned in this one institution.
For the economic growth of any country, it is very important to develop the habit of saving among the citizens of the country. According to one economic principle, the savings rate should be four times the percentage increase in the country’s GDP. For example, if India has to achieve a growth rate of 8 percent, the savings rate should be 32 percent. This principle is called the serial capital output ratio. From this point of view also, the Central Government tries to provide attractive interest rates on various savings deposit schemes. Small savings are helpful in furthering the economic development of the country. If investment is to be increased in the country, then savings have to be increased. That is why the central government tries to establish control over various other investment institutions apart from the banks so that the investments made in the form of savings of the general public can be safe. The savings rate in India has been very attractive as compared to other countries. When the economic growth rate in India reached 9 percent, the savings rate at that time was about 37 percent. Also, due to high savings rate, there is less liquidity in the market and due to low liquidity, the rate of inflation also remains under control. When other deposits come in the form of savings in banks or other economic institutions, it is possible to use that amount in production works, this gives strength to the economic development of the country.
About 25 to 30 percent of your total income should be invested in the form of savings. This will prove helpful in securing our future. Investments should be made by the young citizens in the form of savings for a long time, so that such investments can earn compound interest. While senior citizens should make safe investments in place of long term investments and liquidity should also be maintained in this investment. By taking more risk, the income is more, but the fear of sinking the principal amount also remains, so it is also necessary to take care of security while investing.
Citizens of other countries, especially developed countries, do not have the habit of saving. Western philosophy does not believe in reincarnation. On the contrary, Indian citizens rely heavily on even the smallest of savings. In the year 2014, the Central Government had started the Jan Dhan Yojana to connect the poor citizens of India with the banks. Under this scheme, so far about 50 crore savings accounts have been opened in various banks and by adding small savings, an amount of more than Rs 2 lakh crore has been deposited in these accounts. India has shown the way to the whole world in this context. This savings will make the citizens living below the poverty line the middle class of tomorrow, this will increase the consumption of various products in the country and speed up the country’s economic progress. This has become possible only because of the Indian Sanatan Sanskars. Families in India consider it necessary to save for the future while balancing their expenses.
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Source: Economy gets strength from small savings
Category: Asia, News, World, india
