The payment of
commission to agents of Public Provident Fund (PPF) Scheme and Senior
Citizens Savings Scheme has been discontinued, with effect from 1st
December, 2011. Commission under all other schemes (except MPKBY Agents)
has been reduced from 1% to 0.5%. However, commission to Mahila Pradhan
Kshetriya Bachat Yojana (MPKBY) agents will continue at the existing
rate of 4%.
The Committee set up by the Government for comprehensive review of
National Small Savings Fund (NSSF) had, inter-alia, recommended
rationalization of commission rate structure. Based on the
recommendations, the Government has decided to reduce/ abolish the
agency commission, the main, intention for which is to make these
schemes more investor centric than agent centric. Market linked rates to
investors, market linked interest rates on loans to States and Centre
and viability of NSSF can only be ensured if the administrative cost of
NSSF, of which this commission is a part, is brought down and the
benefit of market alignment of rates is passed on to the investor rather
than burdening the structure with higher administrative costs. To this
effect, the decision of Government is pro investor and also keeps in
mind the interest of agents where required.
This information was given by the Minister of State for Finance, Shri
Namo Narain Meena in written reply to a question in Lok Sabha today.