Introduction: The Ministry of Finance, Department of Economic Affairs, issued a significant notification on November 3rd, 2023. This notification, G.S.R. 818(E), introduces amendments to the National Savings Recurring Deposit Scheme 2019. The amendments encompass changes in repayment amounts, maturity periods, and provisions for legal heirs or nominees. In this article, we will delve into the details of these changes, their implications, and how they impact the depositors.
Detailed Analysis:
1. Revised Repayment Table: The amendment introduces a new repayment table, Table-1.1, outlining the amounts repayable based on the period during which the account is opened. This revision impacts accounts opened from October 1st, 2023, onwards, ensuring proportional repayments for different denominations.
2. Extended Maturity Periods: Tables 1.3 and 2.3 are updated to specify maturity periods between July 1st, 2023, and September 30th, 2023. Additionally, Table-1.4 details amounts inclusive of interest repayable for accounts extended beyond maturity, ranging from one to five years.
3. Nominee Payouts: The scheme introduces Table-2.4, specifying the amounts payable to legal heirs or nominees upon the depositor’s demise. The table provides a detailed breakdown of payouts for varying numbers of deposits made, ensuring transparency and clarity for beneficiaries.
Conclusion: The National Savings Recurring Deposit Scheme 2023 amendments, as notified by the Ministry of Finance, bring crucial changes to the existing framework. These modifications ensure fairness, transparency, and consistency in repayments, extended maturity periods, and nominee payouts. Deposit holders, both existing and prospective, should carefully review these changes to understand their implications fully. By staying informed, depositors can make well-informed financial decisions in alignment with these updated regulations.
By keeping track of these changes, individuals can make informed decisions about their financial planning, ensuring they fully understand the revised terms and conditions of the National Savings Recurring Deposit Scheme 2019. Stay tuned for more updates on financial regulations and schemes to empower your financial choices.
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MINISTRY OF FINANCE
(Department of Economic Affairs)
NOTIFICATION
New Delhi, the 3rd November, 2023
G.S.R. 818(E).— In exercise of the powers conferred by section 3A of the Government Savings Promotion Act, 1873 (5 of 1873), the Central Government hereby makes the following Scheme further to amend the National Savings Recurring Deposit Scheme, 2019, namely:-
1. Short title and commencement.- (1) This Scheme may be called the National Savings Recurring Deposit (Third Amendment) Scheme, 2023.
(2) It shall be deemed to have come into force on the 1st day of October, 2023.
2. In the National Savings Recurring Deposit Scheme, 2019 (hereinafter referred to as the said Scheme), in subparagraph (1) in paragraph 9, for the TABLE 1.1, the following TABLE shall be substituted, namely:-
“TABLE-1.1
Period during which account is opened |
Amount (Rupees) repayable on an account of 100 rupees denomination |
From 12.12.2019 to 31.03.2020 | 7231.38 |
From 01.04.2020 to 31.03.2023 | 6969.67 |
From 01.04.2023 to 30.06.2023 | 7043.27 |
From 01.07.2023 to 30.09.2023 | 7099.08 |
On or after 01.10.2023 | 7136.58 |
Amount repayable inclusive of interest on an account of any other denomination shall be proportionate to the amount specified in the table”. |
3. In the said Scheme, in paragraph 10, in sub-paragraph (2), in clause (a),-
(a) in TABLE-1.3, for the words, figures and letters, “on or after the 1st day of July, 2023”, the words, figures, letters and brackets “between 1st July, 2023 to 30th September, 2023 (both days inclusive)” shall be substituted;
(b) after TABLE-1.3, the following TABLE shall be inserted, namely:-
“TABLE-1.4
[Amount inclusive of interest repayable on the accounts opened on or after the 1st day of October, 2023 and continued with monthly deposits beyond the maturity period or maturity period as extended under sub- paragraph (1) of paragraph 10]
Number of completed years for which the account continued |
Amount (Rupees) on an account of 100 rupees denomination |
One year | 8871.09 |
Two years | 10724.75 |
Three years | 12705.77 |
Four years | 14822.89 |
Five years | 17085.46 |
Amount repayable inclusive of interest on an account of any other denomination shall be proportionate to the amount specified in the table”. |
4. In the said Scheme, in paragraph 11, in sub-paragraph (2),-
(a) in TABLE-2.3, for the words, figures and letters, “on or after the 1st day of July, 2023”, the following words, figures, letters and brackets “between 1st July, 2023 to 30th September, 2023 (both days inclusive)” shall be substituted;
(b) after TABLE-2.3, the following TABLE shall be inserted, namely:-
“TABLE-2.4
[Amount inclusive of interest repayable on the accounts opened on or after the 1st day of September, 2023
and continued without any fresh monthly deposits beyond the maturity period or maturity period as extended
under sub-paragraph (1) of paragraph 11]
Number of completed years for which the account continued |
Amount (Rupees) on an account of 100 rupees denomination |
One years | 7626.88 |
Two years | 8150.87 |
Three years | 8710.85 |
Four years | 9309.30 |
Five years | 9948.87 |
Amount repayable inclusive of interest on an account of any other denomination shall be proportionate to the amount specified in the table”. |
5. In the said Scheme, in paragraph 12, in sub-paragraph (1),-
(a) in TABLE-2.3, for the words, figures and letters, “on or after the 1st day of July, 2023”, the following words, figures, letters and brackets “between 1st July, 2023 to 30th September, 2023 (both days inclusive)” shall be substituted;
(b) after TABLE-2.3, the following TABLE shall be inserted, namely:-
“TABLE-2.4
[Amount payable to legal heir or nominees on the death of the depositor in five years under this Scheme on the accounts opened on or after the 1st day of September, 2023 and up to the closure of the account]
Number of deposits made |
Amount (Rupees) for denomination of 100 rupees | Number of deposits made | Amount (Rupees) for denomination of 100 rupees |
1 to 11 | Deposits made | 36 | 3994.92 |
12 | 1244.20 | 37 | 4117.66 |
13 | 1351.67 | 38 | 4241.08 |
14 | 1459.73 | 39 | 4365.18 |
15 | 1568.39 | 40 | 4489.97 |
16 | 1677.65 | 41 | 4615.46 |
17 | 1787.52 | 42 | 4741.64 |
18 | 1898.00 | 43 | 4868.52 |
19 | 2009.10 | 44 | 4996.11 |
20 | 2120.81 | 45 | 5124.41 |
21 | 2233.14 | 46 | 5253.41 |
22 | 2346.09 | 47 | 5383.14 |
23 | 2459.67 | 48 | 5513.58 |
24 | 2573.89 | 49 | 5644.75 |
25 | 2688.73 | 50 | 5776.65 |
26 | 2804.22 | 51 | 5909.28 |
27 | 2920.34 | 52 | 6042.65 |
28 | 3037.11 | 53 | 6176.75 |
29 | 3154.53 | 54 | 6311.60 |
30 | 3272.60 | 55 | 6447.20 |
31 | 3391.33 | 56 | 6583.56 |
32 | 3510.71 | 57 | 6720.67 |
33 | 3630.76 | 58 | 6858.54 |
34 | 3751.48 | 59 | 6997.18 |
35 | 3872.86 | 60 | 7136.58 |
Amount repayable inclusive of interest on an account of any other denomination shall be proportionate to the amount specified in the table”. |
[F. No. 1/4/2016-NS (Part)]
ASHISH VACHHANI, Addl. Secy.
Explanatory Memorandum.-By giving retrospective effect to the National Savings Recurring Deposit (Third Amendment) Scheme, 2023, no one shall be adversely affected as a result of retrospective effect being given to this amendment.
Note: The principal Scheme was published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 918(E), dated the 12th December, 2019 and subsequently amended vide numbers G.S.R. 285(E), dated the 5th May, 2020, G.S.R. 330(E), dated the 27th April, 2023 and G.S.R. 621(E), dated the 23rd August, 2023.