New Interest Rates for Small Savings Schemes Announced for FY 2022-23

The Indian government has revised the interest rates for Small Savings Schemes starting from January 1, 2023. The revision has been made based on the fourth quarter of the financial year 2022-23, as per the SB Order No. 26/2022 dated December 30, 2022. The Ministry of Communications has received notifications from the Department of Economic Affairs, Ministry of Finance, dated January 20, 2023, regarding the revision of interest rates for the Kisan Vikas Patra, National Savings Time Deposit, National Savings Certificates (VIII Issue), National Savings (Monthly Income Account), and Senior Citizens’ Savings Schemes. The revision has been approved by the Competent Authority.

Revision of interest rates for Small Savings Schemes w.e.f. 01.01.2023

SB Order No. 26 / 2022

No. 113-03/2017-SB(Pt.1)
Govt. of India
Ministry of Communications
Department of Posts
(F.S. Division)

Dak Bhawan, New Delhi – 110001
Dated: 30.01.2023

Corrigendum / Addendum

To
All Heads of Circles / Regions

Subject: Revision of interest rates for Small Savings Schemes w.e.f. 01.01.2023.

Madam / Sir,

Kindly refer the SB Order No. 26/2022 dated 30.12.2022 issued in connection with the subject cited above. In para 1 of the said order, “third quarter’ may be read as “fourth quarter’.

  1. In connection with the revision of interest w.e.f. 01.01.2023, the undersigned is directed to forward copies of gazette notifications issued by Department of Economic Affairs, Ministry of Finance in connection with the revision of interest rates for fourth quarter of FY 2022-23 for further necessary actions. Copies of the following notifications dated 20.01.2023 are enclosed.

(i). G.S.R. 52(E) Kisan Vikas Patra (Amendment) Scheme, 2023
(ii). G.S.R. 53(E) National Savings Time Deposit (Amendment) Scheme, 2023
(iii). G.S.R. 54(E) National Savings Certificates (VIII Issue) (Amendment) Scheme, 2023
(iv). G.S.R. 55(E) National Savings (Monthly Income Account) (Amendment) Scheme, 2023
(v). G.S.R. 56(E) Senior Citizens’ Savings (Amendment) Scheme, 2023

  1. This is issued with the approval of Competent Authority.

Encl: As above.

(T C VIJAYAN)
Asst. Diréctor (SB-I)

Source: utilities.cept.gov.in

MINISTRY OF FINANCE
(Department of Economic Affairs)
NOTIFICATION
New Delhi, the 20th January, 2023

G.S.R. 52(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 Kisan Vikas Patra Scheme, 2019, namely:-

1. Short title and commencement.-(1) This Scheme may be called the Kisan Vikas Patra (Amendment)
Scheme, 2023.
(2) It shall be deemed to have come into force on the 1st day of January, 2023.

2. In the Kisan Vikas Patra Scheme, 2019 (hereinafter referred to as the said Scheme), in paragraph 5, –
(a) in sub-paragraph (1B), for the words and figures, “on or after the 1st day of October, 2022”, the words, figures and brackets “between 1st October, 2022 and 31st December, 2022 (both days inclusive)” shall be substituted;
(b) after sub-paragraph (1C), the following sub-paragraph shall be inserted, namely:-
“(1D) The maturity period of an account opened on or after the 1st day of January, 2023 shall be ten years and the deposits made in the account shall double on maturity.”.

3. In the said Scheme, in paragraph 6, in sub-paragraph (3),-
(a) in TABLE-3, for the words and figures, “on or after the 1st day of October”, the words, figures and brackets “between 1st October, 2022 and 31st December, 2022 (both days inclusive)” shall be substituted;
(b) after TABLE-3, the following TABLE shall be inserted, namely:-

“TABLE-4

[Table showing premature closure value of account opened on or after 1st day of January, 2023 with 1000 rupees]

Period from the date of the certificate to the date of its encashmentAmount payable inclusive of interest
(Rupees)
(1)(2)
Two and half years but less than three years1162
Three years but less than three and half years1198
Three and half years but less than four years1234
Four years but less than four and half years1272
Four and half years but less than five years1311
Five years but less than five and half years1351
Five and half years but less than six years1392
Six years but less than six and half years1435
Six and half years but less than seven years1478
Seven years but less than seven and half years1524
Seven and half years but less than eight years1570
Eight years but less than eight and half years1618
Eight and half years but less than nine years1667
Nine years but less than nine and half years1718
Nine and half years but before Maturity of Certificate1771
On maturity of certificate2000″

[F. No. 1/04/2016-NS] ASHISH VACHHANI, Addl. Secy.


Explanatory Memorandum. – The Kisan Vikas Patra (Amendment) Scheme, 2023 takes effect from the date as specified in the notification. However, no one shall be adversely affected as a result of retrospective effect being given to this amendment Scheme.
Note : The principal Scheme was published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i) vide number G.S.R. 920(E), dated the 12th December, 2019 and subsequently amended vide number G.S.R 283(E), dated the 5th May, 2020 and G.S.R. 837(E), dated the 22nd November, 2022.

NOTIFICATION
New Delhi, the 20th January, 2023

G.S.R. 53(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, 2023.
    (2) It shall be deemed to have come into force on the 1st day of January, 2023.
  2. In the National Savings Time Deposit Scheme, 2019 (hereinafter referred to as the said Scheme), in paragraph 7,-
    (a) in sub-paragraph 1(B), for the words and figures, “on or after the 1st day of October, 2022”, the words, figures and brackets “between 1st October, 2022 and 31st December, 2022 (both days inclusive)” shall be substituted;
    (b) after sub-paragraph 1(B), the following sub-paragraph and Table shall be inserted, namely:-
    “1(C) The rate of interest as specified in the Table below shall be applicable to the deposit made on or after 1st day of January, 2023 under the Scheme.

TABLE

[F. No. 1/04/2016-NS] ASHISH VACHHANI, Addl. Secy.

Explanatory Memorandum.- The National Savings Time Deposit (Amendment) Scheme, 2023 takes effect from the date as specified in the notification. However, no one shall be adversely affected as a result of retrospective effect being given to this amendment Scheme.

S. No.Category of accountRate of interest
(per cent. per annum)
(1)(2)(3)
1One-year6.6
2Two-years6.8
3Three-years6.9
4Five-years7.0″.

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 and G.S.R. 838(E), dated the 22nd November, 2022.

NOTIFICATION
New Delhi, the 20th January, 2023

G.S.R. 54(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 to amend the National Savings Certificates (VIII Issue) Scheme, 2019, namely:-
1. Short title and commencement. – (1) This Scheme may be called the National Savings Certificates (VIII Issue) (Amendment) Scheme, 2023.
(2) It shall be deemed to have come into force on the 1st day of January, 2023.
2. In the National Savings Certificates (VIII Issue) Scheme, 2019 (hereinafter referred to as the said Scheme), in paragraph 5,-
(a) in sub-paragraph (2A), for the words and figures, “on or after the 1st day of April, 2020”, the following words, figures and brackets “between 1st April, 2020 to 31st December, 2022 (both days inclusive)” shall be substituted;
(b) after sub-paragraph (2A), the following sub-paragraph shall be inserted, namely:-
“(2B) The maturity value of an account opened on or after the 1st day of January, 2023 with one thousand rupees shall be one thousand four hundred two rupees and fifty five paisa and proportionate for deposits made with any other sum as per sub-paragraph (1) of paragraph 4. In calculation of maturity value, any amount in fraction of a rupee shall be rounded off to the nearest rupee and for this purpose, any amount of fifty paisa or more shall be treated as one rupee and any amount less than fifty paisa shall be ignored.”;
(c) in sub-paragraph (3), in TABLE-2, for the words and figures, “on or after 1st day of April, 2020”, the words, figures and brackets “between 1st April, 2020 to 31st December, 2022 (both days inclusive)” shall be substituted;

(d) in sub-paragraph (3), after TABLE-2, the following TABLE shall be inserted, namely:-

“TABLE-3

[For the certificates purchased on or after 1st day of January, 2023]

The year for which interest accruesAmount of interest (rupees) accruing on
certificated of Rs.1000 denomination
First Year70
Second Year74.9
Third Year80.14
Fourth Year85.75
Fifth Year91.76

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

  1. In the said Scheme, in paragraph 7, in sub-paragraph(4), –
    (a) in TABLE-2, for the words and figures, “on or after 1st day of April, 2020”, the words, figures and brackets “between 1st April, 2020 and 31st December, 2022 (both days inclusive)” shall be substituted;
    (b) after TABLE-2, the following TABLE shall be inserted, namely:-

“TABLE-3

[Table showing premature closure value of account opened on or after the 1st day of January, 2023 with 1000 rupees]

Period from the date of the account to the date of its pre-mature
closure
Amount payable inclusive of interest (rupees)
(1)(2)
Three years or more, but less than three years and six months1191.02
Three years and six months or more, but less than four years1226.23
Four years or more, but less than four years and six months1262.48
Four years and six months or more, but less than five years1299.80″.

[F. No. 1/04/2016-NS] ASHISH VACHHANI, Addl. Secy.

Explanatory Memorandum.- The National Savings Certificates (VIII Issue) (Amendment) Scheme, 2023 takes effect from the date as specified in the notification. However, no one shall be adversely affected as a result of retrospective effect being given to this amendment Scheme.

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. 284(E), dated the 5th May, 2020.

NOTIFICATION
New Delhi, the 20th January, 2023

G.S.R. 55(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 (Monthly Income Account) Scheme, 2019, namely:-

  1. Short title and commencement. – (I) This Scheme may be called the National Savings (Monthly Income Account) (Amendment) Scheme, 2023.

(2) It shall be deemed to have come into force on the 1st day of January, 2023.

  • In the National Savings (Monthly Income Account) Scheme, 2019, in paragraph 5,-
  • in sub-paragraph (1B), for the words and figures, on or after the 1st day of October, 2022″, the words, figures and brackets “between 1st October, 2022 and 31st December, 2022 (both days inclusive)” shall be substituted;
  • after sub-paragraph (1B), the following sub-paragraph shall be inserted, namely:-

“(IC) The deposit made under this Scheme on or after the 1st day of January, 2023 shall bear interest at the rate of 7.1 per cent. per annum.”.

[F. No. 1/0412016-NS] ASHISH VACHHANI, Addl. Secy.

Explanatory Memorandum. -The National Savings (Monthly Income Account) (Amendment) Scheme, 2023 takes effect from the date as specified in the notification. However, no one shall be adversely affected as a result of retrospective effect being given to this amendment Scheme.

Note : The principal Scheme was published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i) vide number G. S. R. 917(E), dated the 12th December, 2019 and subsequently amended vide number G.S.R. 286(E) dated the 5th May, 2022 and G.S.R. 839(E) dated the 22nd November, 2022.

NOTIFICATION
New Delhi, the 20th January, 2023

G.S.R. 56(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 Senior Citizens’ Savings Scheme, 2019, namely:-

  1. Short title and commencement. – (1) This Scheme may be called the Senior Citizens’ Savings (Amendment) Scheme, 2023.

(2) It shall be deemed to have come into force on the 1st day of January, 2023.

  • In the Senior Citizens’ Savings Scheme, 2019, in paragraph 5,-
  • in sub-paragraph (1 B), for the words and figures, “on or after the 1st day of October, 2022”, the words, figures and brackets “between 1st October, 2022 and 31st December. 2022 (both days inclusive)” shall be substituted;
  • after sub-paragraph (1B), the following sub-paragraph shall be inserted, namely:-

-( IC) The deposit made under this Scheme on or after the 1st day of January, 2023 shall bear interest at the rate of 8.0 per cent. per annum..

[F. No. 1/04/2016-NS] ASHISH VACHHANI, Addl. Secy.

Explanatory Memorandum.- The Senior Citizens’ Savings (Amendment) Scheme, 2023 takes effect from the date as specified in the notification. However, no one shall be adversely affected as a result of retrospective effect being given to this amendment Scheme.

Note: The principal Scheme was published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i) vide number G. S. R. 916(E), dated the 12th December, 2019 and subsequently amended vide number G.S.R. 287 (E), dated the 5th May, 2020 and G.S.R. 842(E), dated the 22nd November, 2022.

Interest Rates for Small Savings Schemes for FY 2022-23

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