F.No.1/4/2019-NS
Government of India
Ministry of Finance
Department of Economic Affairs
(Budget Division)

North Block, New Delhi
Dated: 31.12.2024

OFFICE MEMORANDUM

Subject: Revision of interest rates for Small Savings Schemes – reg.

The rates of interest on various Small Savings Schemes for the fourth quarter of FY 2024-25 starting from 1st January, 2025 and ending on 31st March, 2025 shall remain unchanged from those notified for the third quarter (1st October, 2024 to 31st December, 2024) of FY 2024-25.

2. This has the approval of the competent authority.

(Chandra Karel)
Addl. Budget Officer

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F.No.01/04/2016-NS
Government of India
Ministry Of Finance
Department of Economic Affairs
(Budget Division)

North Block, New Delhi
Dated: 19.09.2018

Subject: Revision of interest rates for small savings schemes.

The undersigned is directed to refer to this Department’s OM of even number dated 16th February, 2016 vide which the various decisions taken by the Government Regarding interest fixation for small savings schemes were communicated to all concerned.

2. On the basis of the decision of the Government, interest rates for small savings schemes are to be notified on quarterly basis. Accordingly, the rates of interest on various small savings schemes for the third quarter of financial year 2018-19 starting 1st October, 2018 and ending on 31st December, 2018, on the basis of the interest compounding/payment built-in the schemes, shall be as under:-

*No change
3. This has the approval of Finance Minister.

(Padam singh)
Sr.Regional Director(NS)
Tele: 01123095155

Source: Dea.gov.in

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– However, a final decision on this would be taken at a meeting of the Central Board of Trustees (CBT), the apex decision-making body of the EPFO, tomorrow in Chennai.

The Employees’ Provident Fund Organisation (EPFO) is likely to retain the rate of interest at 8.75% for provident fund deposits for the current fiscal, sources in the labour ministry said.

EPFO has been paying 8.75% interest rate for the last two fiscals to its 5 crore organised sector subscribers. Retaining of the rate for the third year in a row might face resistance from the central trade unions, who are pressing for a 9% returns for the current fiscal.

However, a final decision on this would be taken at a meeting of the Central Board of Trustees (CBT), the apex decision-making body of the EPFO, tomorrow in Chennai. The CBT includes representatives from the government, employers and employees.

Sources said that the rates would most likely to be retained at the previous two years’ level considering the government’s proposal to bring down the rates of small savings with effect from April 1 to allow banks to reduce their lending rate in tandem with rate cuts by the Reserve Bank.

EPFO provides the rate of interest from its earnings on investment on formal sector workers’ fund without any assistance from the government. The income projection of the retirement fund body is upwards of R34,844 crore for the current fiscal. At this, EPFO would not have any problem to raise the rates to even 9% considering that it would still have R100-odd crore surplus.

Sources, however, said the finance ministry is not in agreement with the idea of raising the rates since it would have a lot of bearings on other savings schemes as well. The Finance Audit and Investment Committee of the EPFO had earlier recommended 8.95% rate of interest rate on PF deposits.

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Retirement fund body EPFO may provide 9 per cent interest on PF deposits for this fiscal, which is higher compared to 8.75 per cent provided in previous two fiscals to its over five crore subscribers.

The Employees Provident Fund Organisation’s (EPFO) finance panel has recommended raising the interest rate on statutory savings of over 5 crore subscribers from 8.75% to 8.95% during the current fiscal.

“The income projection of Rs 34,844.42 crore for the current fiscal is expected to be revised upward. Thus the body can provide 9 per cent rate of interest on PF deposits for 2015-16,” an EPFO trustee and Bharatiya Mazdoor Sangh Secretary P J Banasure told PTI.

The Employees Provident Fund Organisation’s (EPFO) Finance Audit and Investment committee (FAIC) recommended 8.95 per cent interest on PF deposits for the current fiscal in its meeting earlier this week.

Banasure, who is also a member of FAIC said:”If the EPFO provides 8.95 per cent interest rate on PF deposits for 2015-16, it will leave a surplus of Rs 91 crore as per income projections worked out in September last year. But the FAIC will meet again later this month to vet the latest income estimate which is likely to be revised upward.”

According to EPFO income projections worked out in September, providing 9 per cent interest on PF will result in a deficit of Rs 100 crore. “We are expecting that there will be a surplus of Rs 100 crore on providing 9 per cent rate of interest on PF deposits when EPFO will work out the latest estimates. FAIC can change its recommendation in the next meeting and suggest 9 per cent interest rate for 2015-16,” he said.

The proposal has to be endorsed by the Central Board of Trustees (CBT) before the Finance Ministry notifies it.

However, there has been indications from the Finance Ministry that it will slash interest rate on small savings like public provident fund in view of the rate cut by Reserve Bank of India.

The EPFO provides rate of interest from the earning on investments of formal sector workers’ funds without any assistance from the government.

Source: EOT

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Government Decides to Fix Interest Rates at 8.7% for General Provident Fund(GPF) and other Similar Funds Including Special Deposit Scheme, 1975(SDS,1975) for Non-Government Provident, Superannuation and Gratuity Funds for the Financial Year 2015-16

It was decided by the Government to link the interest rates of State PFs (General Provident Fund and other similar funds) including Special Deposit Scheme, 1975 (SDS, 1975) for Non-Government Provident, Superannuation and Gratuity Funds for the FY 2015-16 to Public Provident Fund (PPF) rates. In pursuance of that decision, the Government has decided to fix the rates 8.7% per annum applicable to the following:-

• The General Provident Fund (Central Services).
• The Contributory Provident Fund (India).
• The All India Service Provident Fund.
• The State Railway Provident Fund.
• The General Provident Fund (Defence Services).
• The Indian Ordnance Provident Fund.
• The Indian Ordnance Factories Workmen’s Provident Fund.
• The Indian Naval Dockyard Workmen’s Provident Fund.
• The Defence Services Officers Provident Fund.
• The Armed Forces Personnel Provident Fund.

The rate of interest is applicable to the above funds w.e.f. 1st April, 2015 and until further orders.

Recently, the Government had kept the interest rates for PPF and other Small Savings Schemes intact.

However, interest rates for 5 year Senior citizen Saving Scheme and Sukanya Samriddhi Account Scheme have been increased from 9.2 to 9.3% and 9.1 to 9.2% respectively, keeping in view the commitment of the Government towards the welfare of the girl child and the senior citizens.

Source: PIB News

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F.No. 5(2)-B(PD)/2013
Government of India
Ministry of Finance
Department of Economic Affairs

New Delhi, the 12th November, 2013

OFFICE MEMORANDUM

Subject : Advances to Government servants — Rate of interest for purchase of conveyances during 2013-2014.

The undersigned is directed to state that the rates of interest for advances sanctioned to the Government servants for purchase of conveyances during 2013-2014 i.e. from 1st April, 2013 to 31st March, 2014 are revised as under:

Rate of interest per annum

(i)     Advance for purchase of conveyance other than motor car (viz. motor cycle, scooter etc.)     9%
(ii)     Advance for purchase of motor car     11.5%

sd/-
(A.K. Bhatnagar)
Under Secretary (Budget)

Source: www.finmin.nic.in
[http://finmin.nic.in/the_ministry/dept_eco_affairs/budget/RoIPurchConvey13.pdf]

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VARIOUS LOAN SCHEMES TO BSNL EMPLOYEE BY ORIENTAL BANK OF COMMERCE

CUSTOMIZED RETAIL CREDIT SCHEME FOR BSNL EMPLOYEES
GENERAL TERMS & CONDITIONS

The various kinds of loans along with the general terms and conditions, are mentioned below:

1. The recovery of housing loan will start not later than 18 months from the date of first disbursement or immediately from the next month after completion of the house/flat, whichever is earlier.
2.       The recovery of education loan will start 12 months after completion of the course or 6 months after getting the job whichever is earlier, for the child whose studies have been financed through loan.
3.     Loanees can fore-close the loan account without any foreclosure charges.
4.     The interest will be charged on reducing balances of loan on day-to-day basis.
5.     No processing charges will be levied by bank.
6.     Amount of the loan will be as per eligibility and maximum loan ceiling as detailed above. However, the bank can give loan for a lesser amount also at its own discretion.
7.     Borrowing capacity of the borrower shall be considered at the time of the sanction of the loan.
8.     Employees desiring to avail loans will furnish their Employee / PF No. duly certified by their Staff Department.

Interest Rates for Various Retail Credit Loans

As a special gesture, the Bank has allowed a concession of 0.50% on its card interest rates in all brackets and schemes (excl. Personal Loan Scheme which is already customized for BSNL employees); and the final rates (Related to Base Rate System) for BSNL Employees are as under:

*Floating rate of interest will change as per the changes in the Base rate of the Bank, i.e., increase or decrease in the interest rate by the same basis points as in the base rate of the Bank. However in any case, the proposed rate of interest shall not fall below the Base Rate of the Bank.  Most of the loans are in Branch Managers’ powers and will not take any significant time after fulfillment of the documents / formalities.

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