The Government Savings Promotion Act, 1873
The Government Savings Promotion Act, 1873
Overview:
The Government Savings Promotion Act, 1873 was enacted to encourage saving habits among the public by promoting government savings schemes. It aimed to establish and regulate savings institutions or agencies that would help individuals deposit money securely and earn interest, thereby fostering thrift and financial security.
Purpose:
To encourage the habit of saving among the general public.
To promote government-backed savings schemes as a safe investment option.
To regulate agencies or institutions that handle government savings deposits.
Key Provisions:
Promotion of Savings: The Act empowered the government to promote savings institutions to encourage people to deposit money safely.
Authorized Agencies: It provided for the establishment and recognition of agencies or institutions authorized to accept government savings deposits.
Regulation and Control: The government could regulate the functioning of these savings agencies.
Security of Deposits: Ensured that deposits under government savings schemes were secure and backed by the government.
Encouragement of Thrift: By offering interest on deposits, the Act encouraged individuals to save regularly.
Penalties: Provided penalties for unauthorized handling or mismanagement of government savings.
Importance:
Laid the foundation for structured government savings schemes in India.
Encouraged financial inclusion by promoting small savings among all sections of society.
Helped mobilize funds for government use in development projects.
Fostered a culture of thrift and financial responsibility.
Summary Table
| Aspect | Details |
|---|---|
| Act Name | The Government Savings Promotion Act, 1873 |
| Year Enacted | 1873 |
| Purpose | To promote government savings schemes and encourage saving habits |
| Main Provisions | Establishment and regulation of savings agencies; security of deposits; encouragement of thrift |
| Scope | Public savings under government-backed schemes |
| Importance | Financial inclusion, fund mobilization, fostering thrift |
| Penalties | For unauthorized handling or mismanagement of savings |
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