One would assume small savings instruments to lose their sheen after the 200 basis points cut in interest rate in the last two years. But, in the first four months of the current financial year, gross small savings have grown 25 per cent compared to the same period last year.
Acccording to data compiled by the finance ministry, the gross small savings collections during April-July 2002 stand at Rs 34,400 crore, higher by Rs 6,728 crore against realisation during April-July last year. The net collections i.e. after redemptions, were in fact, almost 31 per cent or Rs 3,900 crore higher at Rs 16,700 crore during the period.