We hope that the Primary Dealers Association would be more proactive in publicising the advantages of holding Government Securities. Despite my repeated requests, I have not seen brochures or advertisements issued by the Primary Dealers Association on the Government Securities market. Permit me to reiterate that the RBI is willing to extend full cooperation to you in this endeavour.
It is recognised that there are a few structural and tax issues that render Government Securities somewhat unfavourable as compared with other financial instruments available to savers. First, the rates of interest paid on small savings and tax exemptions available to such instruments cause a dampening impact on retailing of Government Securities, and also increase the cost to Government.