Reviving Postal Funds

I had been wondering for quite sometime about the Postal savings because it is very obvious that they are not able to meet the interest rates provided by the banks. Most of last year & this year, the bank deposit interest rates were reaching their peaks which was good for all small time investors but was not good for the postal saving schemes.

With the new set of investment benefits, postal savings are almost on par with that of banks. 5% bonus for 5 year deposit is what is making this new similarity. Also, the additional benefit is these savings can be declared under S80C for tax exemption. Likewise, is the case for PO Senior Citizen SS.

So, can we expect the tax exemption bracket to be increased from INR 110000? Can we expect deposit rates from banks increased or atleast more that .5% increment in the case of Sr. citizens?