Date:15/02/2006 URL: http://www.thehindubusinessline.com/2006/02/15/stories/2006021500851003.htm

Back Bonus on MIS

The Government of India's sudden decision to withdraw the 10 per cent bonus on monthly income scheme (MIS) has come as a bolt from the blue for depositors.

This unilateral decision on the part of the Government, without prior and sufficient notice to depositors is a cruel move and will badly affect the lower- and middle-income classes who find the Post Office MIS scheme attractive.

Ironically, the Ministry of Communication and Information Technology, while slapping the rash decision, has not intimated the post-offices clearly.

One wonders why the Government could not have given at least a week's notice to enable prospective and future investors to take informed decisions with respect to their tax planning and other savings plans.

Eighty per cent of the investments are by the lower- and middle-class in this erstwhile attractive saving scheme which has a ceiling of Rs 3 lakh.

The Government should have waited until the Budget and taken a consensus. The Government's move seems uncalled for.

Prabhavathi Rao

Chennai

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