RBI/2016-17/225
DGBA.GAD.2012/15.02.005/2016-17

February 9, 2017

The Chairman/Chief Executive Officer
Agency Banks handling Public Provident Fund, Kisan Vikas Patra- 2014,
Sukanya Samriddhi Account, Senior Citizen Savings Scheme-2004

Dear Sir

Interest rates for Small Savings Schemes

Please refer to our circular DGBA.GAD.881/15.02.005/2016-17 dated October 13, 2016 on the above subject. The Government of India, had vide their Office Memorandum (OM) No.F.No.1/04/2016–NS.II dated December 30, 2016 advised the rate of interest on various small savings schemes for the fourth quarter of the financial year 2016-17 (copy enclosed).

2. The contents of this circular may be brought to the notice of the branches of your bank operating Government Small Saving Schemes for necessary action. These should also be displayed on the notice boards of your branches for information of the subscribers to these Schemes.

Yours faithfully

(V.S. Prajish)
Assistant General Manager
 

Encl : as above

Interest rates for Small Savings Schemes were revised for the January-March 2017 quarter; banks must notify subscribers. Government revised interest rates for small savings schemes for the quarter 1 January 2017 to 31 March 2017, fixing rates and compounding/payment frequencies for instruments such as Savings Deposit (4.0% annually), Time Deposits (1 year 7.0%; 2 year 7.1%; 3 year 7.3%; 5 year 7.8% quarterly), 5 year Recurring Deposit (7.3% quarterly), Senior Citizen Savings Scheme (8.5% quarterly/paid), Monthly Income Account (7.7% paid), National Savings Certificate and Public Provident Fund (8.0%), Kisan Vikas Patra and Sukanya Samriddhi Account as notified. Agency banks were directed to notify and display these rates to subscribers.