National Small Savings Fund (NSSF) Schemes - Revision of interest rates for small savings schemes

Office Memorandum [No. 6-1/2011-NS.II(Pt.)], dated 26-3-2012

The undersigned is directed to refer to Ministry of Finance's O.M. of even number dated 11th November, 2011, vide which the various decisions taken by the Government on the recommendations of the Shyamala Gopinath Committee for Comprehensive Review of National Small Savings Fund (NSSF), were communicated to all concerned.

2. One of the decisions of the Government based on the recommendations of the Committee relates to revision of interest rates every financial year, to be notified before 1st April of that year. Accordingly, the rates of interest on various small savings schemes for the financial year 2012-13 effective from 1.4.2012, on the basis of the interest compounding/payment built-in in the schemes, shall be as under:

3. Necessary notifications, including those requiring amendments to rules of small savings schemes will be notified separately.

4. This has the approval of Finance Minister.

Revision of interest rates for small savings schemes notified, annual review instituted and implementing notifications to follow. Interest rates for small savings schemes were revised as an annual exercise and notified effective 1 April 2012, with scheme-specific rates set according to the compounding or payment mechanics of each scheme. The Office Memorandum records adjustments from the rates effective 1 December 2011 to the rates effective 1 April 2012 across Savings Deposit, various tenors of Time Deposit, Recurring Deposit, Senior Citizen Savings Scheme, Monthly Income Scheme, National Savings Certificates, and Public Provident Fund. Separate notifications and rule amendments will be issued to implement the changes.