RBI/2012-13/458
DGBA.CDD. No. H- 5603 /15.02.001/2012-13
March 28, 2013
Public Provident Fund Scheme, 1968 (PPF, 1968) and
Senior Citizens Savings Scheme, 2004 (SCSS, 2004) – Revision of interest rates
Please refer to our circular RBI/2011-12/359 dated January 20, 2012 regarding interest rates on small savings schemes, wherein it was indicated that as per Government’s decision on revision of interest on small savings schemes, the interest rates on various small savings schemes for every financial year will be notified by the Government before April 01st of that year.
2. The Government of India has now vide their Office Memorandum (OM) No. 6-1/2011-NS.II (Pt.) dated March 25, 2013, advised the rate of interest on various small savings schemes for the financial year 2013-14. Accordingly, the rates of interest on PPF, 1968 and SCSS, 2004 for the financial year 2013-14, effective from April 01, 2013, on the basis of the interest compounding/payment built-in in the schemes, will be as under:
|
Scheme |
Rate of Interest w.e.f. 01.04.2012 |
Rate of Interest w.e.f. 01.04.2013 |
| 5 year SCSS, 2004 |
9.3% p.a |
9.2% p.a |
| PPF, 1968 |
8.8% p.a |
8.7% p.a |
3. The contents of this circular may be brought to the notice of the branches of your bank operating the PPF, 1968 and SCSS, 2004 schemes. These should also be displayed on the notice boards of your branches for information of the PPF, 1968 & SCSS, 2004 subscribers.
Yours faithfully
(Sangeeta Lalwani)
General Manager
Understand and in fact it is mentioned on postal savings site that premature withdrawal from sr. citizens savings scheme 2004 wud not warrant any deductions
for withdrawal after three years but the banks and post offices dont have
any information to this effect resulting they dont allow premature withdrawal after three years without penalty/deduction one one percent. Please advise
quote the relevent circular if any to this effect. thanks n regards
Reducing interest rates on schemes like PPF and SCSS will only result in lesser saving in these schemes and will no longer be lucrative as there are other market schemes available. Govt should rather increase roi on PPF and SCSS to enable the salaried class and retired persons to take the benefit of such schemes. There should be schemes for roping in business class.