Current · Source: Reserve Bank of India · RBI/2013-14/415 · issued 18 Dec 2013 · ~2 min read
Quick answerRBI directs banks to pay SDS 1975 account holders interest at 8.8% for Jan-Mar 2013 and 8.7% for Apr-Dec 2013, disbursed on Jan 1, 2014 via ECS/NEFT/RTGS or cheques.
The rule, in the simplest words
Banks must pay interest on SDS 1975 accounts (a special savings plan from 1975) for the year 2013.
Interest rate is 8.8% for January to March 2013 and 8.7% for April to December 2013.
Interest must be given to account holders on January 1, 2014, using electronic transfer (like NEFT/RTGS) or by cheque.
Banks must tell all their deposit offices (branches that handle these accounts) to follow these rules.
How it plays out — a real example
A payments & clearing officer in Indore, Priya, checks her bank's list of SDS 1975 accounts. She ensures that on January 1, 2014, every depositor gets the correct interest: 8.8% for the first three months of 2013 and 8.7% for the rest, paid through electronic transfer or cheque, just as the RBI circular says.
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
❓ Common questions
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.
📜 Read the original circular — full text as issued by RBI
RBI/2013-14/415
DGBA.CDD. No.3622/15.01.001/2013-14
December 18, 2013
The Chairman & 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
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,
Special Deposit Scheme 1975 –
Payment of interest for the calendar year 2013
Please refer to our letter DGBA.CDD.H-3717/15.01.001/2012-13 dated December 28, 2012, on the captioned subject.
2. In this connection, we advise that interest for the calendar year 2013 may be promptly disbursed to the SDS account holders @ 8.8% per annum from 1st January 2013 to 31st March 2013 and @ 8.7% per annum from 1st April 2013 to 31st December 2013 through electronic mode such as ECS/NECS/ NEFT/RTGS or by way of account payee cheques on January 01, 2014 itself, subject to instructions, as applicable now, contained in paragraphs 3 and 4 of our circular CO.DT.No.15.01.001/H-3527/2003-04 dated December 30, 2003.
3. Please issue suitable instructions to all your Deposit Offices and acknowledge the receipt.
Yours faithfully,
(Surendra Prasad)
Assistant General Manager
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2013-14/415 · issued 18 Dec 2013. The plain-English explanation above is BankPulse’s own independent summary.
Example: if you are a Compliance officer at a bank this circular applies to (State Bank of India and its associates, Public sector banks listed in the circular, Deposit offices handling SDS 1975 accounts, SDS 1975 account holders), your first concrete step on “SDS 1975 Interest Payment for CY 2013” is: “Disburse SDS 1975 interest for CY 2013 on January 1, 2014, using ECS/NECS/NEFT/RTGS or account payee cheques.” (RBI issued this 18 Dec 2013).
Circular: RBI/2013-14/415 -- SDS 1975 Interest Payment for CY 2013
Issued: 18 Dec 2013
Action required: Disburse SDS 1975 interest for CY 2013 on January 1, 2014, using ECS/NECS/NEFT/RTGS or account payee cheques.
Action required: Apply interest rate of 8.8% per annum for January to March 2013 and 8.7% per annum for April to December 2013.
Action required: Issue instructions to all deposit offices to ensure prompt payment and acknowledge receipt of this circular.
Action required: Follow applicable instructions from RBI circular CO.DT.No.15.01.001/H-3527/2003-04 dated December 30, 2003.
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.
💬 Banker Discussion
Discuss this circular with fellow bankers — reply, upvote what helps, report what doesn’t belong. Be professional; no client data. Views are the commenter’s own, not BankPulse’s.
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=8641&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.
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