Revision of interest rate of National Savings Recurring Deposit Scheme

Ministry of Finance has recently declared amendments to the National Savings Recurring Deposit Scheme, 2019 vide National Savings Recurring Deposit (Second Amendment) Scheme, 2023. The modifications pertain to interest rates and the repayable amounts.

Key Adjustments and Their Implications:

1. Commencement Date: This amendment retroactively kicks in from the 1st of July, 2023, ensuring that existing account holders since this date are covered under the new provisions.

2. Modification of Repayable Amounts: For accounts opened at different intervals, repayable amounts on an account of 100 rupees denomination have been altered. Notably:

• Accounts opened from 12th December 2019 to 31st March 2020 have a repayable amount of 7231.38 rupees.
• Accounts initiated from 1st April 2023 to 30th June 2023 will now see a repayable amount of 7043.27 rupees.
• And for those created on or after 1st July, 2023, the amount is set at 7099.08 rupees.

3. Extended Accounts and Their Interest Inclusivity: For accounts that continue beyond their maturity periods, there are specific amounts repayable, as detailed in TABLE-1.3 and TABLE-2.3. The most noteworthy aspect here is the increasing return on extended accounts, marking a beneficial move for long-term depositors.

4. Revised Repayments on Death of Depositor: In the unfortunate event of the account holder’s demise within five years of account opening post 1st July 2023, there are now clear repayable amounts established. This adds a layer of transparency and eases processes during challenging times for the family or nominees of the deceased.

5. Reassuring Clause on Retroactivity: An essential mention in this amendment is about the retrospective nature. The Ministry has ensured that the retrospective application does not negatively impact any depositors, infusing trust and confidence among the scheme’s participants.

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MINISTRY OF FINANCE
(Department of Economic Affairs)
NOTIFICATION
New Delhi, the 23rd August, 2023

G.S.R. 621(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. (1) This Scheme may be called the National Savings Recurring Deposit (Second Amendment) Scheme, 2023.

(2) It shall be deemed to have come into force on the 1^st day of July, 2023.

2. In the National Savings Recurring Deposit Scheme, 2019 (hereinafter referred to as the said Scheme), 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
On or after 01.07.2023	7099.08
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-1.2, for the words and figures, “on or after the 1st day of April, 2023”, the following words, figures and brackets “between 1^st April, 2023 to 30^th June, 2023 (both days inclusive)” shall be substituted;

(b) after TABLE-1.2, the following TABLE shall be inserted, namely:-

“TABLE-1.3

[Amount inclusive of interest repayable on the accounts opened on or after the 1^st day of July, 2023 and continued with monthly deposits beyond the maturity period or maturity period as extended under sub­paragraph (1) of paragraph 10]

Number of completed years for which the account continued	Amount (Rupees) on an account of 100 rupees denomination
One years	8814.76
Two years	10644.70
Three years	12596.52
Four years	14678.33
Five years	16898.80
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-2.2, for the words and figures, “on or after the 1st day of April, 2023”, the following words, figures and brackets “between 1^st April, 2023 to 30^th June, 2023 (both days inclusive)” shall be substituted;

(b) after TABLE-2.2, the following TABLE shall be inserted, namely:-

“TABLE-2.3

[Amount inclusive of interest repayable on the accounts opened on or after the 1^st day of July, 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	7571.89
Two years	8076.19
Three years	8614.08
Four years	9187.79
Five years	9799.71
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-2.2, for the words and figures, “on or after the 1st day of April, 2023”, the following words, figures and brackets “between 1^st April, 2023 to 30^th June, 2023 (both days inclusive)” shall be substituted;

(b) after TABLE-2.2, the following TABLE shall be inserted, namely:-

“TABLE-2.3

[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 1^st day of July, 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	3982.44
12	1242.86	37	4104.43
13	1350.10	38	4227.08
14	1457.91	39	4350.40
15	1566.31	40	4474.37
16	1675.28	41	4599.02
17	1784.85	42	4724.33
18	1895.00	43	4850.33
19	2005.75	44	4977.00
20	2117.10	45	5104.35
21	2229.04	46	5232.39
22	2341.59	47	5361.12
23	2454.74	48	5490.54
24	2568.51	49	5620.66
25	2682.88	50	5751.48
26	2797.88	51	5883.00
27	2913.49	52	6015.24
28	3029.72	53	6148.18
29	3146.59	54	6281.85
30	3264.08	55	6416.23
31	3382.20	56	6551.34
32	3500.96	57	6687.17
33	3620.36	58	6823.74
34	3740.41	59	6961.04
35	3861.10	60	7099.08
Amount repayable inclusive of interest on an account of any other denomination shall be proportionate to the amount specified in the table”.

[F. No. 1/04/2016-NS]

ASHISH VACHHANI, Addl. Secy.

Explanatory Memorandum.-By giving retrospective effect to the National Savings Recurring Deposit (Second 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 12^th December, 2019 and subsequently amended vide numbers G.S.R. 285(E), dated the 5^th May, 2020, G.S.R. 330(E), dated the 27^th April, 2023.