Government Savings Promotion Act to replace other laws for small savings schemes

Amended law to provide easier exit in case of financial emergencies

by Natasha Nadkar

The Government Savings Promotion Act will replace the Public Provident Fund Act, 1968, the Government Savings Certificate Act, 1959 and the Government Savings Bank Act, 1873, according to the Union Budget 2018-19. Under the amended law, subscribers of small savings schemes including the public provident fund (PPF) may be able to close their accounts prematurely in case of medical or financial emergencies. The amended law will also allow guardians to deposit funds on behalf of minors in all schemes. Minors will be able to nominate an heir. The government will be able to appoint an ombudsman for settlement of disputes related to small savings. Further, the economic affairs secretary Subhash Garg has clarified that existing and new PPF deposits would continue to enjoy protection from being attached.

References
1. https://economictimes.indiatimes.com/news/economy/policy/easy-closure-for-small-savings-schemes-likely/articleshow/62878758.cms
CMIE STATISTICS
Unemployment Rate
Per cent
6.2 +0.1
Consumer Sentiments Index
Base September-December 2015
100.6 0.0
Consumer Expectations Index
Base September-December 2015
99.7 0.0
Current Economic Conditions Index
Base September-December 2015
98.2 0.0
Quarterly CapeEx Aggregates
(Rs.trillion) Sep 17 Dec 17 Mar 18 Jun 18
New projects 1.25 1.51 3.42 2.32
Completed projects 1.25 1.16 1.56 0.91
Stalled projects 0.69 0.88 3.44 0.30
Revived projects 0.34 0.24 0.26 0.22
Implementation stalled projects 0.78 0.71 1.92 0.04
Updated on: 15 Aug 2018 9:20AM
Quarterly Financials of Listed Companies
(% change) Sep 17 Dec 17 Mar 18 Jun 18
All listed Companies
 Income 7.9 12.0 9.7 16.4
 Expenses 9.0 13.0 16.2 19.7
 Net profit -18.0 -14.3 -80.3 3.3
 PAT margin (%) 5.5 4.8 1.2 5.7
 Count of Cos. 4,508 4,503 4,338 3,297
Non-financial Companies
 Income 8.2 13.3 11.1 18.7
 Expenses 8.2 12.4 11.7 20.7
 Net profit -6.0 13.2 1.6 32.5
 PAT margin (%) 6.2 6.4 6.6 7.4
 Net fixed assets 9.2 11.8
 Current assets 2.9 7.2
 Current liabilities 11.0 10.4
 Borrowings 3.4 1.9
 Reserves & surplus 7.9 7.2
 Count of Cos. 3,464 3,471 3,357 2,595
Numbers are net of P&E
Updated on: 15 Aug 2018 9:20AM
Annual Financials of All Companies
(% change) FY15 FY16 FY17 FY18
All Companies
 Income 5.6 1.8 6.0 9.9
 Expenses 5.7 1.9 6.0 13.3
 Net profit 0.1 -9.7 25.8 -37.5
 PAT margin (%) 3.0 2.8 3.5 4.2
 Assets 9.5 10.2 7.5 13.2
 Net worth 8.5 11.3 7.7 12.8
 RONW (%) 5.8 4.9 5.8 5.7
 Count of Cos. 26,178 24,474 22,051 749
Non-financial Companies
 Income 4.9 1.0 5.8 8.5
 Expenses 5.1 0.4 6.1 8.0
 Net profit -9.4 19.9 20.7 6.6
 PAT margin (%) 2.0 2.4 3.0 9.3
 Net fixed assets 13.3 17.9 6.7 27.6
 Net worth 7.0 12.0 6.6 9.7
 RONW (%) 4.6 5.1 5.9 13.2
 Debt / Equity (times) 1.1 1.1 1.0 0.4
 Interest cover (times) 1.9 1.9 2.1 6.2
 Net working capital cycle (days) 66 65 62 8
 Count of Cos. 21,351 20,488 18,371 585
Numbers are net of P&E
Updated on: 12 Aug 2018 11:30AM