Before Thaler and Economic Survey, there was TMA Pai/Syndicate Bank

In the Economic Survey 2018-19 tabled today, there is a chapter on how Indian government is using behavioral economics/nudging to improve public policy.

Replugging (yet again) an old piece to show how How Dr T.M.A Pai nudged many decades before via Syndicate Bank, the bank he owed and developed over the years. Dr. Pai designed a savings product named Pigmy Deposits in 1928 which was nudged people into savings. It was based on similar principles developed much later by Prof Richard Thaler in 1990s.

The Economic Survey chapter discusses savings products designed elsewhere which resemble today’s Pigmy deposits but miss including Pigmy deposits in the list.

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