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
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.