FM advises govt employees to invest in mutual funds

Ahmedabad, Apr 12 (UNI) Union Finance Minister P Chidambaram today advised government employees to invest in mutual funds and such schemes, instead of saving in government bonds alone.

Launching the country's first micro-pension scheme for workers in the unorganised sector here, he said the ''babus'' could take a cue from 25,000 self-employed women who joined the SEWA Bank-UTI Mutual Fund Micro Finance Scheme.

The Ahmedabad-based SEWA Bank, a subsidiary of Self-Employed Women's Association (SEWA), proposes to cover 25,000 more women under the scheme by April-end and all the 2.75 lakh depositors of SEWA Bank by the year-end.

As per the scheme, each woman in the 18-55 age group will have to pay a minimum amount of Rs 50 or multiples of Rs 50 and thereafter receive pension till death. The SEWA women presented a cheque of Rs 17.50 lakh as their contribution to the Minister.

Judging by the successful launch of the pension scheme by poor and illiterate vegetable vendors, rag-pickers and maid servants, Mr Chidambaram said, ''I am convinced that common sense is more important than education and that women perhaps understand economics better than men.'' He urged bank employees seeking pensions in five figures to pay a little heed to the plight of destitute persons getting Rs 200 per month. He said the maximum the government could do was to increase their pension from Rs 75 to Rs 200 in the last Union Budget.

''There are 30 crore people in this country, who are not covered by any social security scheme, let alone pension.'' He exuded confidence of safe passage of the Pension Fund Regulatory Authority Bill soon.

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