A STUDY ON POSTAL SAVINGS- AN INVESTMENT ALTERNATIVE TO THE RURAL AREAS

Abstract

Savings is common to all human societies, even if saving practices differ from One another. Why people save and what make them not to invest? Motivations vary, but caution, social pressures and ambitions for future Consumption is the key drivers encouraging people to save. Yet, the experience of industrialized countries in the early stages of development showed that people of lower Income levels were preferred to depositing their savings in Post offices. One of the most important things for the economies of the developing world is the need for mobilizing domestic financial resources. Postal Savings funds play a significant role in financing public debt. In a number of countries, the Funds are intermediated through a variety of policy based financial institutions with Developmental objectives, returning the funds to the direct benefits of the community Savers.