Centre to park Rs 32,000cr in small savings fund

 The government will transfer Rs 32,000 crore received under the debt swap scheme from states to the National Small Savings Fund (NSSF) which will be reinvested in government securities.

 In a release issued here today, the finance ministry stated that the government securities would be issued at market rate of interest. In the current financial year, the centre has allowed states to take advantage of low interest rates by permitting them to swap high interest loans with cheaper debt.

 A ministry official said the NSSF would reinvest the money transferred to it from the Centre