The committee on small-scale savings is likely to recommend a calibration of interest rates on these instruments with the bank rate of RBI.
The panel, expected to submit its report in the first week of September, is likely to suggest a mechanism to dismantle the administered interest rates on the entire corpus of small-scale savings instruments, and yet retain the attractiveness of small-scale savings for the millions of retail investors.
In the last fiscal, the small savings accounted for over Rs 80,000 crore mobilisation making it the largest savings deposit mode in the country.
The committee, one of the first to be set up as per the announcement in this year