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SDS 1975 Interest Rate Revised to 8.7% from April 2013

Current · Source: Reserve Bank of India · RBI/2013-14/329 · issued 09 Oct 2013 · ~1 min read

Quick answerRBI notified a revision in the interest rate on Special Deposit Scheme (SDS) 1975 deposits for non-government provident, superannuation, and gratuity funds to 8.7% per annum, effective April 1, 2013, as per Ministry of Finance notification.

The rule, in the simplest words

From April 1, 2013, the interest rate on SDS (a special savings plan for retirement funds) deposits went up to 8.7% per year.
This new rate applies only to money from non-government provident (retirement savings), superannuation (pension), and gratuity (lump-sum retirement benefit) funds.
Banks must update their computer systems to pay 8.7% interest on these deposits starting April 1, 2013.
The change was ordered by the Ministry of Finance (the government's money department) and told to banks by RBI (India's central bank).

How it plays out — a real example

A branch operations officer in Indore, Priya, manages her bank's SDS deposits for a local company's gratuity fund. On April 1, 2013, she updates the interest rate in her system from the old rate to 8.7% per annum, ensuring the fund's retirement benefits earn the correct interest as per the new RBI rule.

What changed

The interest rate on deposits under the Special Deposit Scheme (SDS), 1975 for non-government provident, superannuation, and gratuity funds was revised to 8.7% per annum. This revision took effect from April 1, 2013, as notified by the Ministry of Finance.

What it means for you

Banks handling SDS deposits for these funds must update their systems to apply the new 8.7% rate from April 1, 2013. This ensures compliance with government directives and accurate interest crediting for fund beneficiaries.

What you must do

Update interest calculation systems for SDS deposits to 8.7% per annum effective April 1, 2013.
Issue instructions to all deposit offices to implement the revised rate immediately.
Acknowledge receipt of this circular to RBI as directed.

Who it affects

State Bank of India and its associates, 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, Oriental Bank of Commerce, Punjab National Bank, Syndicate Bank, UCO Bank, Union Bank of India, United Bank of India

❓ Common questions

Regulatory timeline

Stated effective date effective April 1, 2013
Decoded by BankPulse 2026-06-18 12:11 IST

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

What is the new interest rate for SDS 1975 deposits?

The interest rate is revised to 8.7% per annum, effective from April 1, 2013.

Which funds are covered under this scheme?

The scheme covers non-government provident, superannuation, and gratuity funds.

When does this revision take effect?

The revision is effective from April 1, 2013, as per the Ministry of Finance notification.

📜 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 ( 112 kb ) Special Deposit Scheme (SDS), 1975 – Revision of Rate of Interest RBI/2013-14/329 DGBA.CDD. No. 2319/15.01.001/2013-14 October 09, 2013 The Chairman & Managing Director Head Office (Government Accounts Department) State Bank of India and its Associates/ 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/ Oriental Bank of Commerce /Punjab National Bank / Syndicate Bank /UCO Bank /Union Bank of India /United Bank of India Dear Sir/Madam, Special Deposit Scheme (SDS), 1975 – Revision of Rate of Interest The Ministry of Finance (Department of Economic Affairs), Government of India, vide its Notification F No.5(4)-B(PD)/2013 dated April 08, 2013, has notified revision in the interest rate on the deposits under the Special Deposit Scheme for Non-Government Provident, Superannuation and Gratuity Funds, as appended:- Notification details Rate of Interest With effect from Government of India, Ministry of Finance (Department of Economic Affairs) Notification F No. 5(4)-B(PD)/2013 dated April 08, 2013 8.7% per annum (eight point seven per cent per annum) April 01, 2013 2. Copy of the notification is enclosed . You may please issue suitable instructions to all your Deposit Offices and acknowledge receipt. Yours faithfully, (R. K. Das) Assistant General Manager Ministry of Finance (Department of Economic Affairs) New Delhi SAVINGS SCHEME NOTIFICATION Dated: April 12, 2013 It is hereby notified that the deposits made under the Special Deposit Scheme for non- Government Provident, Superannuation and Gratuity Funds, announced in the Ministry of Finance (Department of Economic Affairs) Notification No. F. 16(1)-PD/75, dated 30th June, 1975, shall with effect from 1st April, 2013 and until further orders, bear interest at 8.7% (eight point seven per cent) per annum. F. 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Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2013-14/329 · issued 09 Oct 2013. The plain-English explanation above is BankPulse’s own independent summary.

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Who does what — compliance checklist

💻 IT / Systems

Update interest calculation systems for SDS deposits to 8.7% per annum effective April 1, 2013.

📜 Compliance

Issue instructions to all deposit offices to implement the revised rate immediately.
Acknowledge receipt of this circular to RBI as directed.

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 (State Bank of India and its associates, 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, Oriental Bank of Commerce, Punjab National Bank, Syndicate Bank, UCO Bank, Union Bank of India, United Bank of India), your first concrete step on “SDS 1975 Interest Rate Revised to 8.7% from April 2013” is: “Update interest calculation systems for SDS deposits to 8.7% per annum effective April 1, 2013.” (RBI issued this 09 Oct 2013).

Circular: RBI/2013-14/329 -- SDS 1975 Interest Rate Revised to 8.7% from April 2013
Issued: 09 Oct 2013
Action required: Update interest calculation systems for SDS deposits to 8.7% per annum effective April 1, 2013.
Action required: Issue instructions to all deposit offices to implement the revised rate immediately.
Action required: Acknowledge receipt of this circular to RBI as directed.
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=8516&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.