Finance Ministry notifies 7.1 per cent as rate of interest for Particular Deposit Scheme in July-September

The Finance Ministry has stated that deposits made below the Particular Deposit Scheme (SDS) for non-government provident, superannuation and gratuity funds would earn 7.1 per cent curiosity from July 1 to September 30. The charges stay unchanged from the April-June quarter.

The rate of interest on SDS is a significant factor influencing declaration of price of curiosity on the Worker Provident Fund (EPF). It is because almost 80 per cent of EPF corpus stands invested within the SDS. 

SDS is a scheme through which the non-government provident funds like EPFO make investments. 

“It’s hereby notified that the deposits made below the Particular Deposit Scheme for non-government provident, superannuation and gratuity funds, introduced within the Ministry of Finance (Division of Financial Affairs) Notification ..dated June 30, 1975, shall with impact from July 1, 2024, to September 30, 2024, bear curiosity at 7.1 per cent. This price will probably be in drive w.e.f July 1, 2024,” stated a notification issued on Wednesday by the Division of Financial Affairs within the Finance Ministry. 

Funding avenue

The SDS of 1975, launched by the Authorities of India, was designed to supply a safe and steady funding avenue for provident funds, notably these managed by each private and non-private sector employers. 

This scheme was established to make sure that the accumulations in these provident funds earned a assured return, thereby securing the monetary way forward for staff.

Throughout its inception, the Indian economic system was navigating by varied monetary challenges, and there was a urgent want to supply safe funding channels that might instil confidence amongst traders.

Through the years, the scheme has advanced, with the federal government adjusting the rates of interest and different phrases to align with the broader monetary and financial panorama.

Assured return

One of many scheme’s most important points of interest is its assured price of return. This function has persistently made the SDS 1975 an interesting possibility for provident fund trustees in search of secure funding with predictable returns.

The SDS is backed by the Authorities of India, which considerably reduces the funding threat. This backing offers a excessive diploma of safety to the invested principal quantity.

The rates of interest for SDS 1975 deposits are periodically revised by the federal government. These revisions be certain that the returns stay aggressive and reflective of the prevailing financial circumstances.