MANUAL-1 

Particulars of Organization, Functions & Duties

[Section-4 (1) (b) (i)]

1. Aim and Objectives of the Organization:

   Prior to independence National Savings, which is one of the most common means of savings by the people of the country was also serving as a resources mobilization for collecting money for War purpose by the British Govt. has undergone a radical change and became the biggest Bank serving common people. To cater the simple need of savings by the villagers and urban areas the initial deposit has been kept as low as Rs. 50 and subsequent deposit is as low as Rs.5.00 so that any men and women both literate and illiterate can avail the banking facility at the village level.

As such the main objectives of the small Savings organization are:

a. To make aware of the people regarding the benefit of thrift.
b. Assess common peoples need for savings.
c. Mop up savings for Nation building. Instead of borrowing from foreign fund, it is collected from the Citizen.

   It is not a profit earning organization it is a welfare organization serving common people having a social objective i.e. to strengthen the economic condition of the people and the State

2. Mission/ Vision:

   The small savings organization makes attempt to make the savings movement as a mass movement through various means, to increase domestic savings, which ultimately strengthen the country's economy and teach the people the importance of savings. The instrument floated by the National Savings which cater the need of people of different economic status. The details of the schemes are furnished below:

3. Brief History and background for its establishment:

   In order to promote household savings, Govt. of India has established National Savings through Post Offices. The Post Office savings Bank is now the biggest bank serving the smallest man in the country and truly called the peoples Bank. It has a network of about 1,52,000 branches doing savings bank throughout India out of which 1,30,000 are in rural sector serving the simple needs of rural population. It has along history dating back to 1882. In the beginning the objective of POSB was to encourage the habit of thrift among common man but the concept undergone a radical change during last four decades. From the restricted objective of providing a facility to public to deposit their small savings, it has become a medium of mobilizing large resources running into hundreds of crores every year for plan project. 38% of the total collection on small savings in the country are drawn from the rural population. It has penetrated the farthest and isolated villages in India. Post Office savings bank is now a major instrument available to the Govt. for mopping up savings both in the urban and rural areas.

   Constitution of Odisha Small Savings Organisations under Finance Department as a parallel institution of National Savings Organisation, Govt. of India was contemplated in 1966. In 1966 District Samall Savings Supervisors were appointed in selected districts like Cuttack, Puri, Sundargarh, Keonjhar etc. Later in 1972 govt. of Odisha took initiative to have a full fledged organization with a separate Directorate in Finance Department. In 1974 Samll Savings Officers were posted in all Sub-Division. Prior to this District Savings Officers were working in all districts under National Savings Organisations.

a. Agency Function:

   The Post Office Savings Bank in an agency function performed by the Department of Post on behalf of Ministry of Finance, Govt. of India. The Ministry of Finance are paying remuneration for the work to the Deptt. of Post for every savings bank and certificate transaction at the rate fixed from time to time.

b. Role of National Savings Organisation :

   The rules of National Savings are framed by the Ministry of Finance (DEA) in consultation with National Savings Commissioner & Deptt. of Posts. Promotion of business in the Post Office is mainly concern of National Savings Organisation. This organization is solely responsible for publicity of the various schemes and works for the promotion of the ideal of thrift as a way of life among the people.

   The National savings organization is headed by National Savings commissioner with Hqs. at Nagpur. The National Savings central Advisory Board, a non-official body exist at the apex to assist and advise the Govt. on measures to spread the National Savings movement. The National Savings organization work in close coordination with the State Govt. deptts, Deptt. of Post and other organizations. These includes various measures such as development of Agency system, strengthening cadre of agents, utilizing central and state Govt. organization for promotion and publicity organizations and enlisting cooperation of non-officials and voluntary organization and individuals.

c. Role of State Govt.:

   The National savings Collections invested in National Savings Schemes became available resources for development to the central and state Govt. 80% of the net collection in a year in the state is available as loan to the State Govt. The State Govt., therefore take keen interest and work jointly with the National Savings Organisation for promotion of savings in the state. Odisha Govt. in the Deptt. of finance has set up its own small savings organizations with Small savings Directorate at state Hqs. And offices at Dist and Sub-Division level.