No Interest on National Savings Scheme (NSS) from October 1, 2024
No Interest on National Savings Scheme (NSS) from October 1, 2024
The Ministry of Finance, through its Department of Economic Affairs, has announced significant amendments to the National Savings Scheme Rules, 1992. These changes were published in the Gazette of India on August 29, 2024, under notification G.S.R. 537(E). The new rules are effective from the date of publication and impact the interest calculation and accrual for the National Savings Scheme (NSS).
Download Gazztte Notification-1
Download Gazztte Notification-2
Key Highlights of the Amendments:
- Title and Commencement:
- The updated rules are titled the “National Savings Scheme (Amendment) Rules, 2024.”
- These amendments are effective from the date of their publication in the Official Gazette.
- Interest Rate Changes:
- For the period starting from March 1, 2003, and ending before October 1, 2024, the interest rate for the National Savings Scheme will be 7.5% per annum.
- This interest is calculated on the lowest balance in an account between the 10th day of the month and the month’s end. The interest will be compounded annually and credited to the account at the end of each year.
- No Interest Accrual Post-October 1, 2024:
- Effective from October 1, 2024, no interest will accrue on the balances in the accounts of National Savings Scheme subscribers under these rules.Notification Details:
- Date of Issue: August 29, 2024
- Gazette Notification No.: G.S.R. 538(E)
- Effective Date: October 1, 2024
The notification, issued under sub-rule (1) of Rule 6 of the National Savings Scheme Rules, 1987, states that:
On or after October 1, 2024, no interest shall accrue on the balances at the credit of the subscribers of the National Savings Scheme.”
This supersedes the earlier notification (G.S.R. 177(E) dated March 1, 2003), with the exception of actions taken or omitted before the issuance of this supersession.
- Effective from October 1, 2024, no interest will accrue on the balances in the accounts of National Savings Scheme subscribers under these rules.Notification Details:
Important Notes:
- The National Savings Scheme Rules, 1992, were initially published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), on September 15, 1992. These rules have undergone several amendments over the years, including updates in 2000, 2001, 2002, and 2003.
