How 'Provident' is the Provident Fund Savings in India: An Analysis

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Authors

  • Aradhana Nanda
     ,IN

Keywords:

Provident Fund, Bank Deposits, Government Bonds, Inflation, Real Rate of Return

Abstract

The paper analyses the pension and provident fund savings in India over a period of fifteen years from 1998-2013. The year 1999 was the 'International year of old persons'. The Government of India also formed Project OASIS to look into the aspect of old age savings and suggest reforms to the existing system of pension and provident fund. The New Pension System for government servants was introduced in 2004 and extended to general public in 2009. The earlier system prevalent since 1952 relied exclusively on investment in government bonds and securities. It arouses natural curiosity to know whether the public looked only for security of their savings and showed no regard for returns on their meagre savings. This paper analyses these issues and understands that with reforms in the provident and pension fund system, it is possible to achieve better returns. At the same time, inflation controlling efforts need to be carried on while encouraging people to save more.

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Published

2018-05-16

How to Cite

Nanda, A. (2018). How ’Provident’ is the Provident Fund Savings in India: An Analysis. Journal of Business Thought, 8, 11–23. Retrieved from https://informaticsjournals.co.in/index.php/jbt/article/view/21194

Issue

Volume 8 April 2017- March 2018

Section

Article

License

All the articles published in JBT are distributed under a creative commons license. The journal allows the author(s) to hold the copyright of their work (all usages allowed except for commercial purpose).
Received 2018-05-16
Accepted 2018-05-16
Published 2018-05-16

 

References

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Reserve Bank of India (2013). Handbook of statistics of the Indian economy. Mumbai: RBI.

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Shah, A. (2000). Issues in pension system reform in India. Mumbai: Indira Gandhi Institute for Development Research.

Shah, A. (2005). A sustainable and scalable approach in Indian pension reform. New Delhi: Rajiv Gandhi Institute for Contemporary Studies.

United Nations (U.N.). (2012). Population ageing and development report. Department of Economic and Social Affairs, UNO.

World Bank. (1994). Averting the old age crisis: Policies to protect the old and promote growth. OUP: World Bank.

World Bank. (2001). India: The challenge of old age income security. World Bank.