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Core Purpose

Two notifications by the Ministry of Finance (Department of Economic Affairs) amending the National Savings Time Deposit Scheme, 2019 and the Sukanya Samriddhi Account Scheme, 2019 to prescribe revised interest rates applicable to deposits made on or after 1 January 2024.

Detailed Summary

The Ministry of Finance (Department of Economic Affairs) issued two notifications dated 12 February 2024 under section 3A of the Government Savings Promotion Act, 1873 (5 of 1873). By G.S.R. 108(E), it notified the National Savings Time Deposit (Amendment) Scheme, 2024, deemed effective from 1 January 2024, amending paragraph 7 of the National Savings Time Deposit Scheme, 2019 by revising sub-paragraph 1(E) to apply to deposits made between 1 July 2023 and 31 December 2023, and inserting new sub-paragraph 1(F) prescribing interest rates for deposits made on or after 1 January 2024: 6.9% per annum for one-year accounts, 7.0% for two-year accounts, 7.1% for three-year accounts, and 7.5% for five-year accounts. The principal scheme (G.S.R. 922(E), dated 12 December 2019) had previously been amended via G.S.R. 289(E) dated 5 May 2020, G.S.R. 838(E) dated 22 November 2022, G.S.R. 53(E) dated 20 January 2023, G.S.R. 327(E) dated 27 April 2023, G.S.R. 620(E) dated 23 August 2023, and G.S.R. 830(E) dated 7 November 2023. By G.S.R. 109(E), it notified the Sukanya Samriddhi Account (Amendment) Scheme, 2024, also deemed effective from 1 January 2024, amending paragraph 5 of the Sukanya Samriddhi Account Scheme, 2019 by revising sub-paragraph (1B) to apply to deposits made between 1 April 2023 and 31 December 2023, and inserting new sub-paragraph (1C) fixing the interest rate at 8.2% per annum for deposits and balances from 1 January 2024. That principal scheme (also G.S.R. 922(E) dated 12 December 2019) had earlier been amended via G.S.R. 288(E) dated 5 May 2020 and G.S.R. 329(E) dated 27 April 2023. Both notifications were signed by Ashish Vachhani, Additional Secretary, under file number 1/04/2016-NS, with explanatory memoranda stating that no one would be adversely affected by the retrospective effect given to the amendments.

Full Text

REGD. No. D. L.-33004/99 The Gazette of India CG-DL-E-14022024-252081 EXTRAORDINARY PART II-Section 3-Sub-section (i) PUBLISHED BY AUTHORITY No. 99] NEW DELHI, WEDNESDAY, FEBRUARY 14, 2024/MAGHA 25, 1945 1047 GI/2024 MINISTRY OF FINANCE (Department of Economic Affairs) NOTIFICATION New Delhi, the 12th February, 2024 G.S.R. 108(E).—In exercise of the powers conferred by section 3A of the Government Savings Promotion Act, 1873 (5 of 1873), the Central Government hereby makes the following Scheme further to amend the National Savings Time Deposit Scheme, 2019, namely:- 1. Short title and commencement.-(1) This Scheme may be called the National Savings Time Deposit (Amendment) Scheme, 2024. (2) It shall be deemed to have come into force on the 1st day of January, 2024. 2. In the National Savings Time Deposit Scheme, 2019 (hereinafter referred to as the said Scheme), in paragraph 7,- (a) in sub-paragraph 1(E), for the words, figures and letters, “on or after 1st day of July, 2023", the words, figures, letters and brackets “between the 1st day of July, 2023 and 31st day of December, 2023 (both days inclusive)" shall be substituted; (b) after sub-paragraph 1(E), the following sub-paragraph and Table shall be inserted, namely:- "1(F) The rate of interest as specified in the Table below shall be applicable to the deposit made on or after the 1st day of January, 2024 under the Scheme. TABLE +-------+---------------------+-------------------------------+ | Sl. No. | Category of account | Rate of interest | | | | (per cent. per annum) | +=======+=====================+===============================+ | (1) | (2) | (3) | +-------+---------------------+-------------------------------+ | 1. | One-year | 6.9 | +-------+---------------------+-------------------------------+ | 2. | Two-years | 7.0 | +-------+---------------------+-------------------------------+ | 3. | Three-years | 7.1 | +-------+---------------------+-------------------------------+ | 4. | Five-years | 7.5". | +-------+---------------------+-------------------------------+ [F. No. 1/04/2016-NS] ASHISH VACHHANI, Addl. Secy. Explanatory Memorandum.- By giving retrospective effect to the National Savings Time Deposit (Amendment) Scheme, 2024, no one shall be adversely affected as a result of retrospective effect being given to this amendment. Note: The principal Scheme was published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 922(E), dated the 12th December, 2019 and subsequently amended vide number G.S.R. 289(E), dated the 5th May, 2020, G.S.R. 838(E), dated the 22nd November, 2022, G.S.R. 53(E), dated the 20th January, 2023, G.S.R. 327(E), dated the 27th April, 2023, G.S.R. 620(E), dated the 23rd August, 2023 and G.S.R. 830(E), dated the 7th November, 2023. NOTIFICATION New Delhi, the 12th February, 2024 G.S.R. 109(E). In exercise of the powers conferred by section 3A of the Government Savings Promotion Act, 1873 (5 of 1873), the Central Government hereby makes the following Scheme further to amend the Sukanya Samriddhi Account Scheme, 2019, namely:- 1. Short title and commencement.-(1) This Scheme may be called the Sukanya Samriddhi Account (Amendment) Scheme, 2024. (2) It shall be deemed to have come into force on the 1st day of January, 2024. 2. In the Sukanya Samriddhi Account Scheme, 2019, in paragraph 5,- (a) in sub-paragraph (1B), for the words, figures and letters, “on or after the 1st day of April, 2023", the following words, figures, letters and brackets “between 1st day of April, 2023 to 31st day of December, 2023 (both days inclusive)” shall be substituted; (b) after sub-paragraph (1B), the following sub-paragraph shall be inserted, namely:- "(1C) The deposits made in the account on or after the 1st day of January, 2024 and the balances at the credit of the account shall earn interest at the rate of 8.2 per cent. per annum.". [F. No. 1/04/2016-NS] ASHISH VACHHANI, Addl. Secy. Explanatory Memorandum.- By giving retrospective effect to the Sukanya Samriddhi Account (Amendment) Scheme, 2024, no one shall be adversely affected as a result of retrospective effect being given to this amendment. Note: The principal Scheme was published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 922(E), dated the 12th December, 2019 and subsequently amended vide number G.S.R. 288(E), dated the 5th May, 2020 and G.S.R. 329 (E), dated the 27th April, 2023. Uploaded by Dte. of Printing at Government of India Press, Ring Road, Mayapuri, New Delhi-110064 and Published by the Controller of Publications, Delhi-110054.

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