What changed
The Government of India, via Office Memorandum dated March 4, 2014, confirmed the interest rates for small savings schemes for FY 2014-15. For PPF (1968) and SCSS (2004), the rates remain the same as the previous year: 8.7% p.a. for PPF and 9.2% p.a. for SCSS, effective from April 1, 2014.
What it means for you
Banks operating these schemes must continue offering the same interest rates, ensuring no disruption for subscribers. This stability helps banks in planning their deposit pricing and liquidity management, as these rates influence customer expectations for other savings products.
What you must do
- Communicate the unchanged rates to all branches handling PPF and SCSS accounts.
- Display the revised interest rate notification on branch notice boards for subscriber awareness.
- Update internal systems and records to reflect the rates effective from April 1, 2014.
Who it affects
Banks authorized to operate PPF and SCSS accounts (e.g., SBI, nationalized banks, ICICI, IDBI), PPF and SCSS subscribers, Branch operations and customer service teams
Are the interest rates for PPF and SCSS changing for FY 2014-15?
No, the rates remain unchanged from the previous year: PPF at 8.7% p.a. and SCSS at 9.2% p.a., effective April 1, 2014.
When do these rates become effective?
The rates are effective from April 1, 2014, for the entire financial year 2014-15.
Which banks are required to implement this circular?
All banks operating PPF and SCSS schemes, including SBI, its associates, nationalized banks, and private banks like ICICI and IDBI, must comply.