With reference to the National Small Savings Fund (NSSF), which among the following statements is / are correct?
1. NSSF is a part of the Public Account of India
2. The State Governments can borrow money from the National Small Savings Fund
Choose the correct option from the codes given below:
In order to account for all the monetary transactions under small savings schemes of the Central Government under one umbrella, ‘National Small Savings Fund’ (NSSF) was set up in the Public Account of India w.e.f. 1st April, 1999. The net accretions under the small savings schemes are invested in the special securities of various States/Union Territories (with legislature)/Central Governments. The minimum obligation of States to borrow from the National Small Savings Fund (NSSF) was brought down from 100 per cent to 50 percent of net collections in 2012.
This question is a part of GKToday's Integrated IAS General Studies Module