Revision of interest rates for Small Savings Schemes

Interest rates for various Small Savings Schemes for the first quarter of the 2020-21 financial year from 1 April 2020 to 30 June 2020

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

North Block, New Delhi
Dated: 31.03.2020

OFFICE MEMORANDUM

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

In exercise of the powers conferred by Rule 9(1) of the Government Saving Promotion General Rules 2018, the rates of interest on various Small Savings Schemes for the first quarter of financial year 2020-21 starting from 1st April, 2020 and ending on 30th June 2020 have been revised as indicated below:

Instruments	Rate of interest from 01.01.2020 to 31.03.2020	Rate of interest from 01.04.2020 to 30.06.2020	Compounding frequency *
Savings Deposit	4.0	4.0	Annually
1 Year Time Deposit	6.9	5.5	Quarterly
2 Year Time Deposit	6.9	5.5	Quarterly
3 Year Time Deposit	6.9	5.5	Quarterly
5 Year Time Deposit	7.7	6.7	Quarterly
5 Year Recurring Deposit	7.2	5.8	Quarterly
Senior Citizen Savings Scheme	8.6	7.4	Quarterly and paid
Monthly Income Account	7.6	6.6	Monthly and paid
National Savings Certificate	7.9	6.8	Annually
Public Provident Fund Scheme	7.9	6.8	Annually
Kisan Vikas Patra	7.6 (will mature in 113 months)	6.9 (will mature in 124 months)	Annually
Sukanya Samriddhi Account Scheme	8.4	7.6	Annually

Also check: Rate of interest on various National Small Savings Schemes with effect from 1st January 2020


2. This has the approval of Finance Minister.

(Rajesh Panwar)
Dy. Direétor (Budget)

Rates of small savings schemes

Rates of small savings schemes

22 Mar,2018

The revised Rates of Interest on various Small Savings Schemes Including Saving Deposits, Public Provident Fund, Kisan Vikas Patra and Sukanya Samriddhi Accounts Scheme for the 4th Quarter of financial year 2017-18 is as below:

Instrument	Rate Of Interest W.E.F. 01.01.2018 To 31.03.2018
Savings Deposit	4.0
1 Year Time Deposit	6.6
2 Year Time Deposit	6.7
3 Year Time Deposit	6.9
5 Year Time Deposit	7.4
5 Year Recurring Deposit	6.9
5 Year Senior Citizen Savings Scheme	8.3
5 Year Monthly Income Account	7.3
5 Year National Savings Certificate	7.6
Public Provident Fund Scheme	7.6
Kisan Vikas Patra	7.3 (will mature in 118 months)
Sukanya Samriddhi Account Scheme	8.1

This was stated by Shri Shiv Pratap Shukla, Minister of State for Finance in written reply to a question in Rajya Sabha.

Source : PIB

Revision of commission payable to SAS agents on Kisan Vikas Patra (KVP)

Revision of commission payable to SAS agents on Kisan Vikas Patra (KVP)

F.No.2/4/2014-NS.II
Ministry of Finance
Department of Economic Affairs
(Budget Division)

North Block, New Delhi
Dated: 15.09.2017

Subject: Revision of commission payable to SAS agents on Kisan Vikas Patra (KVP).

In partial modification of the instructions issued vide this Department's O.M. of even no. dated 01.07.2015, the undersigned is directed to convey that the rate of commission payable to the authorised agents under the Standardised Agency System (SAS) for securing investment in Kisan Vikas Patra is revised from 1.0% to 0.5% with immediate effect.

2. This has the approval of Finance Minister.

Sd/-
(Padam Singh)
Regional Director (Sr.)

Government to launch revamped Kisan Vikas Patra soon: Official

Government to launch revamped Kisan Vikas Patra soon: Official

The government will soon launch the revamped Kisan Vikas Patra (KVP) besides some new saving instrument programmes for the girl child as well for the physically challenged person, a senior finance ministry official said today.

“We are going to launch the revamped Kisan Vikas Patra (KVP) soon again in the form of saving instrument,” Rajat Bhargava, Joint Secretary (Budget) in the ministry finance said at an event here.

“Similarly, the government of India is also going to launch some new saving instrument programmes for girl child as well as for the physically challenged person who has not been covered so far (under the programme),” Bhargava added.

Finance Minister Arun Jaitley, in the Budget speech, had said he will re-introduce the KVP, which was a very popular instrument among small savers.

“I plan to reintroduce the instrument to encourage people, who may have banked and unbanked savings to invest in this instrument,” Jaitley had said.

The KVP was discontinued by the UPA government in 2011 following the Shyamala Gopinath Committee report. It had suggested that KVPs may be discontinued as they are prone to misuse.

KVP was a popular saving scheme that doubled the money invested in eight years and seven months. The government sold these saving bonds through Post Offices in the country.

The new government has identified financial inclusion and access to formal financial channels as a priority area and the reintroduction of KVP is seen as furthering this objective.

Source : The Economic Times

A very popular instrument of Kisan Vikas Patra (KVP) re-introduced

A very popular instrument of Kisan Vikas Patra (KVP) re-introduced

Kisan Vikas Patra (KVP) is being re-introduced to encourage people, who may have banked and unbanked savings to invest in this instrument. Announcing this during his maiden Budget Speech in the Lok Sabha today, the Finance Minister Shri Arun Jaitley said that KVP was a very popular instrument among small savers and is being re-introduced to promote saving.