Amendment to Public Provident Fund Scheme, 1968 (PPF, 1968) and Senior Citizens Savings Scheme, 2004 (SCSS, 2004) - Payment of commission to the agents

RBI/2011-12/299

DGBA.CDD. No. H- 3764 /15.02.001/2011-12

December 15, 2011

The Chairman and Managing Director/Managing Director

Head Office, Government Accounts Department

State Bank of India/State Bank of Patiala/

State Bank of Bikaner & Jaipur/State Bank of Travancore/

State Bank of Hyderabad/State Bank of Mysore/ Andhra Bank/

Allahabad Bank/Bank of Baroda/Bank of India/

Bank of Maharashtra/Canara Bank/Central Bank of India/

Corporation Bank/Dena Bank/Indian Bank/Indian Overseas Bank/

Punjab National Bank/Syndicate Bank/UCO Bank/

Union Bank of India/United Bank of India/Vijaya Bank/IDBI Bank/ICICI Bank Ltd.

Dear Sir/Madam,

Amendment to Public Provident Fund Scheme, 1968 (PPF, 1968) and Senior Citizens Savings Scheme, 2004 (SCSS, 2004) –Payment of commission to the agents.

We forward herewith a copy of Government of India Notification No. F.1/12/2011-NS-II dated November 25, 2011, on the captioned subject. The contents of the same are self-explicit.

2. In this regard, we advise that the contents of the Notification may be brought to the notice of the branches of your bank operating the PPF, 1968 and SCSS, 2004 Scheme. These should also be displayed on the notice boards of your branches for the information of the PPF, 1968 & SCSS, 2004 subscribers and agents.

Yours faithfully

(Shrikant Hamine)

Manager

Encls: One

[TO BE PUBLISHED IN THE GAZETTE OF INDIA: EXTRAORDINARY, PART I- SEC.1]

New Delhi, the 25th November 2011

MINISTRY OF FINANCE
(Department of Economic Affairs)

NOTIFICATION

No. F. 1/12/2011-NS-II – The Central Government hereby notifies that the authorised Standardised Agency System (SAS) and Mahila Pradhan Kshetriya Bachat Yojana (MPKBY) agents for canvassing/securing investments in the small savings schemes as per the terms of agreement executed by them under the Standardised Agency System (SAS) and Mahila Pradhan Kshetriya Bachat Yojana (MPKBY) will be paid commission at the rate indicated below:

(A) MAHILA PRADHAN KSHETRIYA BACHAT YOJANA (MPKBY)

                                                                        Rate
(i)   Five-Year Recurring Deposit Account          -  4%

(B) STANDARDISED AGENCY SYSTEM (SAS)

(i)   One-Year Time Deposit                           -   0.5%
(ii)  Two-Year and 3-Year Time Deposit         - 0.5%
(iii)  Five-Year Time Deposit                           -  0.5%
(iv)  Monthly Income Account Scheme           -     0.5%
(v)   Five/Six-Year National Savings Certificate (VIII-issue)    0.5%
(vi)  Ten-year National Savings Certificate (IX-issue) - 0.5%

2. Payment of commission on Public Provident Fund Scheme (1%) and Senior Citizens Savings Scheme (0.5%) shall be discontinued.

3. Incentive, if any, paid by State/Union Territory Governments shall be reduced from commission paid by the Central Government.

4. These instructions shall take effect from the 1st day of December, 2011.