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Untitled Document

MINISTRY OF FINANCE
(DEPARTMENT OF ECONOMIC AFFAIRS)
NEW DELHI

SAVINGS SCHEME NOTIFICATION

Dated: 11th July, 2014

G.S.R.494(E)....In exercise of the powers conferred by section 12 of the Government Savings Certificates Act, 1959 (46 of 1959), the Central Government hereby makes the following rules further to amend the National Savings Certificates (VIII Issue) Rules, 1989, namely:-

1. (1) These rules may be called the National Savings Certificates (VIII Issue) Amendment
Rules, 2014.

(2) They shall be deemed to have come into force on the 1st day of April, 2014.

2. In the National Savings Certificates (VIII Issue) Rules, 1989 (hereinafter referred to as the said rules), in rule 15,-

(a) in sub-rule (6C), for the figures, letters and words "1st day of April, 2013", the figures, letters and words "1st day of April, 2013 but before the 1st day of April, 2014," shall be substituted;

(b) after sub-rule (6C) and the Table relating thereto, the following shall be inserted, namely:-

"(6D) Where a certificate has been purchased on or after the 1st day of April, 2014, the maturity period of acertificate of any denomination, shall be five years, commencing from the date of issue of the certificate and the amount inclusive of interest, payable on encashment of the certificate at any time after the expiry of its maturity period shall be Rs 151.62 for denomination of Rs. 100 and at proportionate rate for any other denomination, and the interest as specified in the Table below shall accrue to the holder or holders of the certificate at the end of each year and the interest so accrued at the end of each year upto the end of the fourth year shall be deemed to have been reinvested on behalf of the holder and aggregated with the amount of face value of the certificate.

TABLE

Year for which interest accrues
Amount of interest (rupees) accruing on
certificate of Rs. 100 denomination
First Year
8.68
Second Year
9.43
Third Year
10.25
Fourth Year
11.14
Fifth Year
12.11".

Note: The amount of interest accruing on a certificate of any other denomination shall be proportionate to the amount specified in the Table above".

3. In rule 16 of the said rules, in sub-rule (4),-

(a) in clause (vii), for the figures, letters and words "1st day of April, 2013", the figures, letters and words "1st day of April, 2013 but before the 1st day of April, 2014" shall be substituted;

(b) after clause (vii) and the Table relating thereto, the following shall be inserted, namely:-

"(viii) If a certificate is encashed under sub-rule (1) after the expiry of three years from the date of certificate, purchased on or after the 1st day of April 2014, the amount payable, inclusive of interest accrued under rule 15 and after adjustment of discount, shall be as specified in the Table below for a certificate of Rs. 100 denomination and at a proportionate rate for a certificate of any other denomination.

TABLE

Period from date of certificate to date of its encashment Amount payable inclusive of
interest (Rupees)
(1) (2)
Three years or more, but less than three years and six months 124.24
Three years and six months or more, but less than four years 128.81
Four years or more, but less than four years and six months 133.56
Four years and six months or more, but less than five years 138.48".

EXPLANATORY MEMORANDUM

The Ministry of Finance, Department of Economic Affairs (Budget Division) vide its O.M. No.6-1/2011- NS.II (Pt.), dated the 11th November, 2011 has communicated to all concerned the various decisions taken by the Government on the recommendations of the Shyamala Gopinath Committee for comprehensive review of National Savings (NSSF). Accordingly, the rates of interests on various small savings schemes for the financial year 2014-15 revised with effect from 1st April, 2014, have been communicated vide its O.M. No. 6-1/2011-NS.II, dated the 4th March, 2014. It is certified that the interests of no deposit holder shall be prejudicially affected by the retrospective effect given to the notification.

F.No.6-1/2011-NS-II (Pt.II)

(Rajat Bhargava)
Jt. Secy.

Note: The principal rules were published vide number G.S.R. 496(E), dated the 1st May, 1989, and subsequently amended vide numbers G.S.R. 508(E), dated the 23rd May, 1990, G.S.R. 120(E), dated the 8th March, 1998, G.S.R. 7(E), dated the 1st January, 1999, G.S.R. 491(E), dated the 6th July, 1999, G.S.R. 47(E), dated the 15th January, 2000, G.S.R. 156(E), dated the 1st March, 2001, G.S.R. 572(E), dated the 2nd August, 2001, G.S.R. 163(E), dated the 1st March, 2002, G.S.R. 711(E), dated the 17th October, 2002, G.S.R. 179(E), dated the 1st March, 2003, G.S.R. 590(E), dated the 25th July, 2003, G.S.R. 591(E), dated the 25th July, 2003, G.S.R. 820(E), dated the 16th October, 2003, G.S.R. 289(E), dated the 13th May, 2005, G.S.R. 744(E), dated the 4th October, 2011 and G.S.R. 842(E), dated the 25th November, 2011, G.S.R. 318(E), dated the 25th April, 2013, G.S.R. 397(E), dated the 25th June, 2013 and G.S.R. 226(E), dated the 13th March, 2014.