The Ministry of Finance has issued a notification under G.S.R. 538(E) on August 29, 2024, announcing a significant change to the National Savings Scheme (NSS). Exercising the powers granted by sub-rule (1) of rule 6 of the National Savings Scheme Rules, 1987, the notification supersedes a previous order (G.S.R. 177(E), dated March 1, 2003). The new directive states that from October 1, 2024, all balances credited to the accounts of NSS subscribers will no longer earn any interest. This change marks a departure from the previous interest-bearing structure of the scheme, which has been in place for decades. The notification applies to future balances and does not affect any actions taken before its enforcement. This decision, signed by Ashish Vachhani, Additional Secretary, will likely impact existing and future NSS account holders by altering the returns they can expect from their savings. The cessation of interest is a critical development in the government’s handling of the National Savings Scheme.
MINISTRY OF FINANCE
(Department of Economic Affairs)
NOTIFICATION
New Delhi, the 29th August, 2024
G.S.R. 538(E).—In exercise of the powers conferred by sub-rule (1) of rule 6 of the National Savings Scheme Rules, 1987, and in supersession of the notification of the Government of India in the Ministry of Finance (Department of Economic Affairs), number G.S.R. 177(E), dated the 1st March, 2003, except as respects things done or omitted to be done before such supersession, the Central Government hereby notifies that the balances at the credit of the subscribers of the National Savings Scheme under the said 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.
