Home › Circulars › RBI/2012-13/458

PPF and SCSS Interest Rates Cut for FY 2013-14

Current · Source: Reserve Bank of India · RBI/2012-13/458 · issued 28 Mar 2013 · ~1 min read

Quick answerFrom April 1, 2013, PPF interest drops to 8.7% and 5-year SCSS to 9.2%, per Government directive. Banks must update systems and notify branches.

The rule, in the simplest words

PPF interest goes down from 8.8% to 8.7% per year starting April 1, 2013.
5-year SCSS interest goes down from 9.3% to 9.2% per year starting April 1, 2013.
The government tells banks the new rates before April 1 every year.
Banks must tell their branches and put the new rates on notice boards.
The rates are for the financial year 2013-14.

How it plays out — a real example

Ramesh, a branch manager at a public sector bank, receives this circular. He updates the bank's software to apply 8.7% on PPF accounts from April 1, and prints a notice for the board. When a customer asks about lower returns, he explains the government's annual revision.

What changed

The Government of India, via Office Memorandum dated March 25, 2013, set new interest rates for small savings schemes for FY 2013-14. Effective April 1, 2013, the PPF rate reduces from 8.8% to 8.7% per annum, and the 5-year SCSS rate reduces from 9.3% to 9.2% per annum. This follows the earlier circular of January 20, 2012, which mandated annual rate notifications before April 1.

What it means for you

Banks operating these schemes must adjust interest accruals and inform customers. The slight rate cuts may affect depositor sentiment, but the schemes remain attractive for tax-saving and retirement planning. Banks should ensure accurate system updates to avoid payout errors.

What you must do

Update interest rate tables for PPF and SCSS in all core banking systems effective April 1, 2013.
Circulate this circular to all branches handling PPF and SCSS accounts.
Display the revised rates on branch notice boards for subscriber information.
Train staff to answer customer queries about the new rates.
Verify that interest calculations for the new financial year use the correct rates.

Who it affects

All scheduled banks operating PPF and SCSS schemes, PPF and SCSS subscribers, Branch operations and deposit teams

❓ Common questions

Regulatory timeline

Stated effective date effective April 1, 2013
Decoded by BankPulse 2026-08-02 04:06 IST

Built from our lineage records — each fact carries its provenance; missing history simply is not shown (never guessed).

When do the new interest rates take effect?

The revised rates are effective from April 1, 2013, as notified by the Government of India.

What are the new rates for PPF and SCSS?

PPF interest is reduced to 8.7% per annum and 5-year SCSS to 9.2% per annum, from the previous 8.8% and 9.3% respectively.

Do banks need to display these rates?

Yes, the circular instructs banks to display the revised rates on branch notice boards for subscriber information.

📜 Read the original circular — full text as issued by RBI

Notifications - Reserve Bank of India Skip to main content Selected Selected Change Language हिंदी Search the Website Search Home About Us ▼ About Us Organisation & Functions ▶ Organisation Structure Departments Offices Training Establishment ▶ College of Agricultural Banking Reserve Bank Staff College College of Supervisors RBI's Functions and Working Governors Deputy Governors Executive Directors Communication Policy of RBI Sources of Information ▶ Annual Publications Half-yearly Publications Quarterly Publications Monthly Publications Weekly Publications Occasional Publications SDDS NSDP Data Releases Publications available on Subscription General Information RBI History Museum ▶ The RBI Museum RBI Monetary Museum Notification ▼ Notifications Master Directions Master Circulars Amendment Directions Draft Notifications/Guidelines ▶ Draft Notifications/Guidelines Draft Directions (RE-wise) Index To RBI Circulars Standalone Circulars Circulars Withdrawn Press Releases Speeches & Media Interactions ▼ Speeches Media Interactions Memorial Lectures Podcasts Publications ▼ Biennial Annual Half-Yearly Quarterly Bi-monthly Monthly Weekly Occasional Reports Working Papers Legal Framework ▼ Act Rules Regulations Schemes Research ▼ External Research Schemes RBI Occasional Papers Working Papers RBI Bulletin History DRG Studies KLEMS State Statistics and Finances Statistics ▼ Data Releases Database on Indian Economy Public Debt Statistics Regulatory Reporting ▼ List of Returns Data Definition Validation rules/ Taxonomy List of RBI Reporting Portals FAQs of RBI Reporting Portals Home Notifications Notifications ( 195 kb ) Public Provident Fund Scheme, 1968 (PPF, 1968) and Senior Citizens Savings Scheme, 2004 (SCSS, 2004) - Revision of interest rates RBI/2012-13/458 DGBA.CDD. No. H- 5603 /15.02.001/2012-13 March 28, 2013 The Chairman and Managing Director/Managing Director Head Office, Government Accounts Department State Bank of India/State Bank of Patiala/ State Bank of Bikaner & Jaipur / State Bank of Travancore/ State Bank of Hyderabad/State Bank of Mysore/ Andhra Bank/ Allahabad Bank/Bank of Baroda/Bank of India/ Bank of Maharashtra/Canara Bank/Central Bank of India/ Corporation Bank/Dena Bank/Indian Bank/Indian Overseas Bank/ Punjab National Bank/Syndicate Bank/UCO Bank/ Union Bank of India/United Bank of India/Vijaya Bank/IDBI Bank Ltd./ICICI Bank Ltd. Madam/Dear Sir, 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 2026 All Months January February March April May June July August September October November December 2025 All Months January February March April May June July August September October November December 2024 All Months January February March April May June July August September October November December 2023 All Months January February March April May June July August September October November December 2022 All Months January February March April May June July August September October November December 2021 All Months January February March April May June July August September October November December 2020 All Months January February March April May June July August September October November December 2019 All Months January February March April May June July August September October November December 2018 All Months January February March April May June July August September October November December 2017 All Months January February March April May June July August September October November December Archives 2016 All Months January February March April May June July August September October November December 2015 All Months January February March April May June July August September October November December 2014 All Months January February March April May June July August September October November December 2013 All Months January February March April May June July August September October November December 2012 All Months January February March April May June July August September October November December 2011 All Months January February March April May June July August September October November December 2010 All Months January February March April May June July August September October November December 2009 All Months January February March April May June July August September October November December 2008 All Months January February March April May June July August September October November December 2007 All Months January February March April May June July August September October November December 2006 All Months January February March April May June July August September October November December 2005 All Months January February March April May June July August September October November December 2004 All Months January February March April May June July August September October November December 2003 All Months January February March April May June July August September October November December 2002 All Months January February March April May June July August September October November December 2001 All Months January February March April May June July August September October November December 2000 All Months January February March April May June July August September October November December 1999 All Months January February March April May June July August September October November December 1998 All Months January February March April May June July August September October November December 1997 All Months January February March April May June July August September October November December 1996 All Months January February March April May June July August September October November December 1995 All Months January February March April May June July August September October November December 1994 All Months January February March April May June July August September October November December 1993 All Months January February March April May June July August September October November December 1992 All Months January February March April May June July August September October November December 1991 All Months January February March April May June July August September October November December Top Back to previous page More Links Bank Holidays Banking Glossary Citizen's Charter Complaints Contact Us COVID-19 Measures E-LMS Events FAQs Financial Education Forms IFSC/MICR Codes Important Websites Opportunities @ RBI RBI Clarifications RBI Kehta Hai RBI’s Vision and Values (1257 kb)--> Right to Information Act Tenders Follow RBI RSS Twitter YouTube Instagram Facebook LinkedIn © Reserve Bank of India. 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Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2012-13/458 · issued 28 Mar 2013. The plain-English explanation above is BankPulse’s own independent summary.

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Who does what — compliance checklist

🏦 Branch Manager

Circulate this circular to all branches handling PPF and SCSS accounts.
Display the revised rates on branch notice boards for subscriber information.

💻 IT / Systems

Update interest rate tables for PPF and SCSS in all core banking systems effective April 1, 2013.

📜 Compliance

Train staff to answer customer queries about the new rates.
Verify that interest calculations for the new financial year use the correct rates.

Grouped from the action items above — a single circular may involve more than one team.

Worked example & action-note template

Example: if you are an IT/Systems lead at a bank this circular applies to (All scheduled banks operating PPF and SCSS schemes, PPF and SCSS subscribers, Branch operations and deposit teams), your first concrete step on “PPF and SCSS Interest Rates Cut for FY 2013-14” is: “Update interest rate tables for PPF and SCSS in all core banking systems effective April 1, 2013.” (RBI issued this 28 Mar 2013).

Circular: RBI/2012-13/458 -- PPF and SCSS Interest Rates Cut for FY 2013-14
Issued: 28 Mar 2013
Action required: Update interest rate tables for PPF and SCSS in all core banking systems effective April 1, 2013.
Action required: Circulate this circular to all branches handling PPF and SCSS accounts.
Action required: Display the revised rates on branch notice boards for subscriber information.
Action required: Train staff to answer customer queries about the new rates.
Action required: Verify that interest calculations for the new financial year use the correct rates.
Owner: ____________ Target date: ____________
Board/committee approval needed? Y / N
Evidence filed in compliance register on: ____________

Built only from this circular’s own published fields — not legal advice; always confirm against the official RBI source.

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BankPulse Compliance Evidence Pack — generated 03 Aug 2026 · status cross-checked against RBI’s official withdrawal register (refreshed weekly).
Official RBI source: https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=7909&Mode=0 — Plain-English summary by BankPulse (bankpulse.ai), reviewed by our expert reviewer, CA Amit Jain. Independent platform, not affiliated with the Reserve Bank of India; is our own plain-English paraphrase, not RBI’s original wording.