Daily Collection /Pygmy Savings
Yesterday I was talking with a friend who runs her own small business. She had a visitor with her, whom she introduced as her ‘daily collection lady’. This lady goes around everyday and collects small amounts as savings from many people and finally deposits them in individual savings bank accounts.
My friend said, “When I see her, I feel guilty that she has come all the way to collect money so I give her whatever I can, even if its just Rs.50. In this way, I have been forced to save and my savings have grown in spite of circumstances.
For the small saver, this seems a wonderful method. It would work well with domestic servants and owners of small businesses. Swarna has mentioned , that she is encouraging her maid to save. She could try this.
Lots of small banks seem to offer this scheme, but how dependable they are is a moot point. The nationalized banks don’t seem to publicize the daily collection scheme as it is more popularly known , but information should be available at the bank itself. Canara Bank does have this program I know. Syndicate Bank pioneered the Pygmy deposit Scheme for small savers.
Pigmy Deposit Scheme
The Bank’s authorised Agent collects the savings at your doorsteps at regular intervals. And your money silently grows over 12-73 months into a lumpsum for meeting your future commitments .
Salient features of the scheme are:
- Amounts as low as Rs.30/- per day can be saved daily / weekly / monthly.
- No penalty even if depositor is unable to pay instalments regularly.
- Deposit account can be closed prematurely subject to certain conditions.
- Loans up to a maximum of 75% of the balance in the Pigmy account available.
- The rates of interest are as fixed by the Bank from time to time.
Pygmy Agents also act as debt collectors for the bank, when small loans are taken under the Small credit Scheme. Banks are taking over loans taken by farmers from moneylenders. And use agents to collect money daily from borrowers. Under the Small Credit scheme, loans are given against gold or some other form of security upto Rs. 2 lakh.