What changed
RBI issued a circular on December 18, 2013, specifying interest rates for the Special Deposit Scheme 1975 for calendar year 2013. The rate was set at 8.8% per annum for the first quarter and 8.7% per annum for the remaining nine months. Banks were instructed to disburse the interest on January 1, 2014, using electronic modes or account payee cheques.
What it means for you
Banks handling SDS 1975 accounts must ensure timely and accurate interest payment to depositors, adhering to the prescribed rates. This impacts liquidity planning for the disbursement date and requires coordination with deposit offices. Non-compliance could lead to customer grievances or regulatory scrutiny.
What you must do
- Disburse SDS 1975 interest for CY 2013 on January 1, 2014, using ECS/NECS/NEFT/RTGS or account payee cheques.
- Apply interest rate of 8.8% per annum for January to March 2013 and 8.7% per annum for April to December 2013.
- Issue instructions to all deposit offices to ensure prompt payment and acknowledge receipt of this circular.
- Follow applicable instructions from RBI circular CO.DT.No.15.01.001/H-3527/2003-04 dated December 30, 2003.
Who it affects
State Bank of India and its associates, Public sector banks listed in the circular, Deposit offices handling SDS 1975 accounts, SDS 1975 account holders
What is the interest rate for SDS 1975 for CY 2013?
The interest rate is 8.8% per annum from January 1 to March 31, 2013, and 8.7% per annum from April 1 to December 31, 2013.
When should the interest be paid to account holders?
Interest must be disbursed on January 1, 2014, through electronic modes like ECS/NECS/NEFT/RTGS or by account payee cheques.
Which banks are covered by this circular?
The circular addresses State Bank of India, its associate banks, and multiple public sector banks including Bank of Baroda, Canara Bank, Punjab National Bank, and others listed in the document.