SPECIAL DEPOSIT SCHEME (SDS)-1975 PAYMENT OF INTEREST FOR CALENDAR YEAR 2017

WHAT WAS THE NOTIFICATION?

The RBI has advised that interest for the calendar year 2017 may be disbursed to the SDS account holders through electronic mode or by way of account payee cheques on January 01, 2018 itself.

WHAT IS SPECIAL DEPOSIT SCHEME(SDS)?

 It was launched by the Central government on July 1, 1975. However, no fresh deposits were allowed under the scheme from March 1997.

 The purpose of the scheme was 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).

REPORTING OF TRANSACTIONS BY AGENCY BANKS TO RBI

WHY THIS NOTIFICATION?

It has been brought to RBI's notice that some agency banks are reporting government transactions after considerable delay and along with the current transactions to RBI, without taking necessary authorisation from the concerned government departments.

WHAT WAS THE NOTIFICATION?

It has now been decided that, for Central Government transactions (electronic as well as in physical mode), if the transactions or any adjustments thereof are reported after a gap of 90 days from the date of transaction, agency banks have to obtain prior approval from concerned ministry/departmentand submit the same to RBI separately at the time of reporting such transactions for settlement.