The Central Government recently notified that the Special Deposit Scheme for second quarter of Non- Government Provident, Superannuation and Gratuity Funds to bear Interest @ 7.8%.
The rate is applicable w.e.f. 1st July, 2017.
Special Deposit Scheme (SDS) was launched by the Central government on July 1, 1975 with an aim to provide better returns to non-government provident funds, superannuation and gratuity funds, surplus funds of the Life Insurance Corporation (LIC) and Employees’ State Insurance Corporation, etc.
The organisations which invested in SDS were Employees’ Provident Fund Organisation (EPFO), General Provident Fund (Central Services), Contributory Provident Fund (India), All India Services Provident Fund, State Railway Provident Fund and General Provident Fund (Defence Services).
On maturity, the amount under the scheme is payable in five equated yearly installments from the date of maturity. The scheme is operated through various public sector banks (PSU banks) and the Reserve Bank of India (RBI) offices.
When the scheme was launched, the rate of interest offered was 10% per annum.
Read the full text of the Notification below.
