Govt urges Centre to hike NSS's interest rates

Thiruvananthapuram, July 3 (UNI) The Kerala Government today urged the Centre to hike the interest rate for deposits in the National Saving Schemes (NSS) in view of the large scale premature withdrawal of deposits.

Kerala Finance Minister Thomas Issac told newspersons here that the interest rate was last revised in March 2003 and it was no longer attractive.

Though the State Government had anticipated in the Budget a loan of Rs 2,700 crore from the National Savings, the trend was disappointing. While a sum of Rs 625.9 crore was mobilised as deposit in the first two months of the financial year, the withdrawal during the period amounted to Rs 669.29 crore. The declining trend was evident during the past three years, he added.

He said if the Central Government did not take immediate steps to save the scheme, the state's finance would also be in deep crisis. It would have to find other sources for mobilising the anticipated Rs 2,700 crore.

UNI