The Ministry of Finance has issued a notification (G.S.R. 537(E)) on August 29, 2024, amending the National Savings Scheme Rules, 1992, under the Government Savings Promotion Act, 1873. The amendment introduces changes to the interest structure of the National Savings Scheme (NSS). Under the revised rules, interest at a rate of 7.5% per annum will apply to balances between March 1, 2003, and before October 1, 2024, calculated monthly on the lowest balance between the 10th day and the end of the month. However, from October 1, 2024, onwards, all balances under the NSS will no longer earn any interest. This amendment marks a significant shift from the current interest-bearing structure to a non-interest-bearing scheme. The changes take effect from the date of their publication in the Official Gazette, reflecting the government’s evolving approach to savings schemes. The notification supersedes several previous amendments made to the National Savings Scheme Rules over the years.
MINISTRY OF FINANCE
(Department of Economic Affairs)
NOTIFICATION
New Delhi, the 29th August, 2024
G.S.R. 537(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 Scheme Rules, 1992, namely:-
1. (1) These rules may be called the National Savings Scheme (Amendment) Rules, 2024.
(2) They shall come into force on the date of their publication in the Official Gazette.
2. In the National Savings Scheme Rules, 1992, in rule 6, in sub-rule (1), for clause (v), the following clauses shall be substituted, namely:-
“(v) For the period commencing from the 1st day of March, 2003 but before 1st day of October, 2024, the interest at the rate of seven-and-a-half per cent per annum shall be allowed for a calendar month on the lowest balance at credit of an account between the close of the tenth day and the end of the month and such interest shall be calculated and credited to the account at the end of each year.
(vi) The balances at the credit of the subscribers of the National Savings Scheme under these rules, on or after the 1st day of October, 2024, shall bear no interest.
[F. No. 14/1/2018-NS-Part(1)]
ASHISH VACHHANI, Addl. Secy.
Note: The National Savings Scheme Rules, 1992 were published in the Gazette of India Extraordinary, Part II, Section 3, sub-section (i), vide number G.S.R. 763(E), dated the 15th September, 1992 and subsequently amended vide notification numbers G.S.R. 46(E), dated the 15th January, 2000, G.S.R. 541(E), dated the 14th June, 2000, G.S.R. 154(E), dated the 1st March, 2001, G.S.R. 162(E) dated the 1st March, 2002, G.S.R 710(E), dated the 17th October, 2002 and G.S.R. 178(E), dated the 1st March, 2003.
