Handbook on

Government
Business
Products

Compiled by Operations Discipline

Updated on 10th January, 2022

Disclaimer: This is our voluntary effort and every care has been taken to give up to-date information based on the RBI and Bank’s guidelines. ever, Howev
users are advised to go through Bank’s Circular and guidelines for details Page 1 of 1
Government Business Products
Public Provident Fund Scheme:
Erstwhile PPF Scheme 1968 now replaced with PPF Scheme 2019

Eligibility for 1. The scheme is open to Individuals and account can also be opened on behalf of minor
opening child as a natural / legal guardian, on behalf of HUF, on behalf of an association of
Account, 1968 persons or a body of individuals.
2. If a resident, who opened an account under this scheme, subsequently becomes a
non-resident during the currency of the maturity period, the account shall be deemed
to be closed with effect from the day he becomes a non-resident.

Subscription Minimum amount Rs.500/- and maximum Rs.1,50,000/- per annum.

Period Minimum period is 15 years and can be extended in a block of 5 years.
Rate of 7.10% w.e.f 01.07.2021, however, subject to change as per Govt. Notification from
Interest time to time.
Withdrawal  Partial withdrawals are allowed after the expiry of 5 financial years.
from the Fund  Partial withdrawal is restricted to 50 % of the amount at credit at the end of 4th year
immediately preceding the year in which the withdrawal is made.
 Entire amount can be withdrawn after completion of 15 years.
Loans After the expiry of one financial year from the end of the initial subscription year but
before the expiry of 5 years from the end of the year in which initial subscription was
made, a loan of 25% of the credit balance at the end of the second year immediately
preceding the year in which the loan is applied may be availed of by the subscriber.
In erstwhile scheme, one needs to pay an interest of 2% on such loans up to & above
the prevailing PPF interest rate, which is now reduced to 1 percent.
Nominations Nominations of one or more persons are allowed except in the account opened on behalf
of the minors.
Premature No withdrawal is permitted before the expiry of 5 full financial years from the end of
Withdrawal the year in which initial subscription was made.
Tax 1. Interest on PPF / withdrawal from the fund is exempted from Income tax.
Concessions 2. Balance held in PPF account is totally exempt from wealth tax.
3. Deposits in the name of wife/minor children will also qualify for deduction of
section 88 of Income Tax Act, 1961.
PPF accounts can be opened at any of the authorized branches:
Premature 1. Exemptions:
Closure 1) In case of need of Funds for higher education of dependent children, after
producing the supporting document.
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 2) Treatment of Life-threatening ailments affecting self, spouse or dependent
Children or parents.
One more provision is added to it now as follows: On account of change in residency
status on production of a copy of passport & visa or I-T return, premature closure is
allowed.

2. If a PPF account that has already completed 15 years and has subsequently been
extended for 5 years. If PPF is closed prematurely before the completion of the current
5 year block period, the reduction in interest rate by 1 percent point shall be applicable
from the date of the commencement of the current 5 year block period and not from
the date of initial opening of the account.

Government of India Savings (Taxable) Bonds:

Eligibility The Bonds may be held by an individual, in his or her individual capacity, or on
joint basis, or anyone or survivor basis, on behalf of a minor as father/mother
legal guardian, a Hindu Undivided Family, Charitable Institutions and
Universities. NRIs are not eligible to subscribe.

Limit Minimum Rs1000/- and in multiple thereof with no maximum limit.

Subscription Subscription to the Bonds will be in the form of Cash/Drafts/Cheques or matured

Relief Bond/s in the name of applicant/s.

Re-payment Repayable on maturity. Premature encashment of the Bonds is not allowed

Interest As specified in the scheme.

Re-payment of Non-cumulative:
Interest Interest is paid half yearly intervals at the end of June and December, every year
by cheque or to the credit of Bank account.
Cumulative:
Interest is compounded with half yearly rests, will be paid to the investor on
maturity along with the principal.

Nomination Nomination allowed except in case of accounts opened for minors.

Tax - Benefit Deposits are exempted from Wealth tax

Loan The Bonds are not tradable in the secondary market and shall not be eligible as
collateral for loans from Banks, financial institutions and Non-Banking Financial
Companies (NBFCs).

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Senior Citizens Savings Scheme - 2004 (SCSS):

Tenure of the Scheme 5 years, which can be extended by 3 more years just once.

Rate of Interest 7.40% w.e.f 01.07.2021, however, subject to change as per Govt.
Notification from time to time.

Frequency of Computing Quarterly

Interest
Tax Aspects Interest is fully taxable
Investment to be in Minimum Rs. 1000/- in beginning and thereafter in multiples of Rs.1000/-
multiples of
Maximum Investment Limit Rs. 15 lakhs

Eligibility Resident Individual can invest in SCSS. NRIs and HUFs are not allowed
to invest in SCSS

Minimum eligible age  60 years (55 years for those who have retired under a voluntary or a
special voluntary scheme provided investment is made within 1 month
of date of receipt of retirement benefits.
 For retired Defense personnel retired on superannuation –However
w.e.f. October 3, 2017 the govt. has issued a notification stating that
the investment age for Defence Personnel has been fixed at 50 Years.
And for those retiring other than on superannuation, minimum age is 55
years.

Facility of premature Available after 1 year of holding but with penalty.

withdrawals - 1.5% of Deposit amount, before completion of 2 Years from the
date of Account opening.
- 1% of Deposit amount, between 2 Years to less than 5 Years.

Accounts can be transferred to other branches/banks/post office.

Transferability feature

Not available
Tradability

Available
Nomination Facility

Mode of Holding Generally single. Joint accounts permitted with spouse.

Availability of applications Forms are available with our authorized branches.

forms

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Sukanya Samriddhi Account (SSA):

A Govt. of India Deposit Scheme for Individuals on behalf of Minor Girl Child
The Scheme

The account may be opened by or legal guardian in the name of a girl child
from the birth of the girl child till she attains the age of ten years and any
girl child, who had attained the age of ten years, one year prior to the
commencement of these rules, shall also be eligible for opening of the
Eligibility account under these rules.
Natural or legal guardian of a girl child shall be allowed to open the account
for two girl children only or 3 accounts if twin girls are born in the second
birth or triplets are born in the first birth.

Initial Minimum Deposit Rs. 250/-in a F.Y. Maximum Rs. 150000/-in F.Y.
Monetary Limits

Birth Certificate of Girl child; Address proof of parents/guardians; Identity

Documents Proof of the parents/guardian

Minimum tenure of contribution is 15 years from the date of opening of

Subscription Limits account.

21 years from the date of opening of account.

Withdrawal allowed up to 50% for the girl’s higher education and marriage
Duration
after she attains 18 years of age

7.60% w.e.f. 01.07.2021, however, subject to change as per Govt.

Rate of Interest Notification from time to time.

Annual subscription during F.Y. eligible for tax exemption under Sec 80 C of
I.T. Act.
Tax Benefits Interest earned on the deposit amount under the scheme is tax free.
No tax will be levied on the maturity amount.

Allowed in the event of death of the depositor or in cases of extreme

compassionate grounds such as medical support in life threatening diseases
Premature Closure
to be authorized by an order by the Central Government.

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 Mode of Deposit Cash/Cheque/ Demand Draft
50% of the balance lying in the account as at the end of previous financial
Withdrawal: year for the purpose of higher education, marriage after attaining the age of
18 years.
Completion of 21 years from the date of opening of the account & where the
Marriage of the account holder takes place before completion of such period
Closure on Maturity
of 21 years. (Affidavit verifying Account Holder’s 18 years of age as on date
of closing of account)
Operations All branches can open Sukanya Samriddhi accounts
Accounts will be opened in GBM module, once enabled
Circular letter No. 00325 06.04.2015
Penalty in Irregular An account may be regularized on payment of a penalty of Rs. 50/- per year,
Account along with the minimum specified subscription for the year (s) of default.

Kisan Vikas Patra (KVP):

It is small Saving Certificate Scheme. Its enables people to mobilize their
small savings into long term saving plan.
Scheme

One must be adult and Indian Resident.

Eligibility Joint accounts permitted up to 3 individuals.
Trust, HUF (Hindu Undivided family) and NRI not eligible to invest in KVP

Minimum Deposit Rs. 1000 and in multiples of Rs.100/-. No limit on the

Investment Limit
maximum amount.

Maturity Period 124 months w.e.f. change in ROI to 6.90 on 01.07.2021

Interest Rate Current Interest Rate is 6.90% (w.e.f. 01.07.2021)
After maturity period, the amount invested gets double.
Benefits

Account opening & operations through GBM module

Operations

Lock in period for premature withdrawal is 2 years 6 months. However, it

can also be paid earlier in following cases:
Premature
 Death of certificate holder or any of the holders
Withdrawal
 On order by court of law
 Forfeiture by a pledge or by Gazette Government Officer.

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Atal Pension Yojana (APY):
A Govt. of India Social Security Scheme for all Citizens in unorganized sector
Scheme

All Citizen of India aged between 18-40 years

Eligibility

Defined contribution by subscriber depending upon his age & targeted

Subscription Limits pension Minimum: Rs 42/- p.m. for subscriber of 18 years of age.

Contributions till the subscriber attain 60 years of age. Minimum tenure of

Investment Period contribution is 20 years from the date of opening of account.

The exit from the Scheme is permitted at the completed age of 60 years
with 100% annuity of pension wealth. On exit, pension available to the
Duration/ Exit
subscriber. Exit also permitted in the event of death of beneficiary or
terminal disease.
Rs1000/-to Rs. 5000/-, depending upon the contribution made by the
Monthly Pension subscriber.

All branches are authorized to open accounts under APY

Operations Account opening & operations through GBM module

National Pension System (NPS):

It is administered and regulated by Pension Fund Regulatory and Development Authority (PFRDA).
NPS is a voluntary, defined contribution retirement savings scheme designed to enable the
subscribers to make optimum decisions regarding their future through systematic savings during
their working life. NPS seeks to inculcate the habit of saving for retirement amongst the citizens.
It is an attempt towards finding a sustainable solution to the problem of providing adequate
retirement income to every citizen of India. It is operated with the participation of the Central
Recordkeeping Agency (CRA) which is the National Security Depository Ltd. (NSDL).

A citizen of India, OCI, whether resident or non-resident is eligible to open the account. Applicant
should be between 18 – 65 years of age as on the date of submission of his/her application to the
POP/ POP-SP.

The subscribers joining the NPS after the age of 60 would be eligible to continue in system up to
age of 70 years and during this period the subscriber may continue to contribute. Two types of
accounts can be opened under NPS. They are:

a. Tier-I account - The applicant shall contribute his/her savings for retirement into this non-
withdrawal account. This is the retirement account and applicant can claim tax benefits against
the contributions made subject to the Income Tax rules in force.

b. Tier-II account - This is a voluntary savings facility. The applicant will be free to withdraw
his/her savings from this account whenever he/she wishes. This is a not a retirement account
and applicant can’t claim any tax benefits against contributions to this account.
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 Disclaimer:
“This is our voluntary effort and every care has been taken to give up-to-date
information based on the RBI and Bank’s guidelines. However, users are advised to go
through Bank’s Circular and guidelines for details”.