World Savings Day (WSD), also known as World Thrift Day, is annually observed across the globe on 31st October to raise awareness regarding the importance of saving and the financial security of individuals.
Observance in India:
In India, the observance was moved to 30th October following the tragic assassination of then-Prime Minister Indira Gandhi, whose death anniversary falls on 31st October 1984.
Background:
That historical day marked the birth of the International Savings Banking Institute (now WSBI). Under the pioneering leadership of President Marchese de Capitani d’Arzago and Director Prof. Filippo Ravizza, they established the “World Thrift Day,” now known as “World Savings Day”.
i.World Thrift Day was established on 31 October 1924 by the World Savings and Retail Banking Institute (WSBI) founding fathers.
ii.The first WSD was observed on 31 October 1924.
Note – WSBI is celebrating their 100th anniversary in Rome,Italy during the 27th WSBI World Congress on 30-31 October, 2024.
Significance:
i.World Thrift Day is celebrated to encourage people to move their savings from home vaults to bank accounts.
- Through this people get benefited from banking services and earn interest on their savings.
ii.The day promotes financial literacy by educating people about saving, budgeting, and prudent financial decision-making.
iii.The day gained prominence and understanding between 1955 to 1970 (after two World Wars).
iv.Currently, it has 103 members, 1.7 billion customers and over 6400 savings and retail banks in 78 countries.
Notable Saving schemes in India
v.The National Savings Institute (NSI), responsible for overseeing these savings schemes, actively promotes financial literacy.
- General and Long-Term Savings
- Post Office Savings Account (POSA): Minimum deposit of ₹500; tax-free interest on amounts up to ₹10,000.
- National Savings Recurring Deposit Account (NSRDA): Monthly contributions starting at ₹100.
- Public Provident Fund Scheme (PPF): Long-term savings over 15 years.
- National Saving Certificate (VIII issue) (NSC): Secure investment with tax rebates.
- Sukanya Samriddhi Account (SSA) helps parents save for the education and empowerment of girl children.
- Specialty Schemes
- Mahila Samman Savings Certificate (MSSC): Higher interest rate of 7.5% for women.
- Kisan Vikas Patra (KVP): Money doubles at maturity.
- Income Generation and Targeted Savings
- National Pension System Vatsalya (NPS Vatsalya): For minors; ₹1,000 monthly investment, five-year maturity with monthly payouts.Allows parents to invest a minimum of ₹1,000 per month,
- Senior Citizen Savings Scheme (SCSS): Safe investment for seniors; minimum ₹1,000, maximum ₹15 lakhs.
- National Savings (Monthly Income Account) Scheme (NSMIAS) provides families with regular income, featuring a five-year maturity period.
About the World Savings and Retail Banking Institute (WSBI):
The World Savings and Retail Banking Institute (WSBI) helps savings and retail banks around the world to thrive.
President – Isidro Fainé
Managing Director – Peter Simon
Headquarters- Brussels, Belgium
Establishment in – 1924
