What changed
Interest rates for PPF, 1968 and SCSS, 2004 have been revised for FY 2013-14. PPF rate drops from 8.8% to 8.7% p.a., and SCSS rate drops from 9.3% to 9.2% p.a., effective April 1, 2013.
What it means for you
Banks operating these schemes must implement the new rates from April 1, 2013. The slight reduction may affect subscriber returns but aligns with government policy on small savings. Banks need to update systems and communicate changes to customers.
What you must do
- Update interest rate calculations for PPF and SCSS accounts to 8.7% and 9.2% p.a. respectively from April 1, 2013.
- Notify all branches operating these schemes about the revised rates.
- Display the new rates on branch notice boards for subscriber information.
- Ensure compliance with Government OM dated March 25, 2013.
Who it affects
Banks operating PPF and SCSS schemes, PPF and SCSS subscribers, Branch staff handling small savings accounts
When do the new interest rates take effect?
The revised rates are effective from April 1, 2013, for the financial year 2013-14.
What are the new interest rates for PPF and SCSS?
PPF rate is 8.7% per annum, and SCSS rate is 9.2% per annum, both reduced by 0.1% from the previous year.
Who issued the directive for these rate changes?
The Government of India issued the directive via Office Memorandum dated March 25, 2013, and RBI communicated it to banks.