SB Order 5/2006 – How to Calculate Interest of Broken Period in SCSS

Here it is SB Order 5/2006 – Corrigendum Issued in Clarification of SCSS-2004 Dated 16.03.2006 how to calculate interest for broken period

No.79-8/2004-FS(Voll.II)
Government of India
Ministry of Communications
Department of Posts
(FS Division)

Dated 16.03.2006

To
All heads of Circles/Regions
Addl. Director General APS, New Delhi

Subject:- Senior Citizen Savings Scheme-2004-Clarification

Sir/Madam

1. The Undersigned has been directed to forward herewith a copy of corrigendum issued by Ministry of Finance, Vide letter no. F.No. 2-8/2004-NS-II dated 8th December 2005 on the above subject, forwarded by the nodal ministry to the Department vide letter dated 06.03.2006.
2. It is requested the contents of this Corrigendum may be circulated to all concerned for information, guidance and necessary action.
3. Kindly acknowledge receipt.

Yours faithfully
Manisha Mishra
ADG (BS&SC)

Corrigendum issued by Ministry of Finance, Vide letter no. F.No. 2-8/2004-NS-II dated 8th December 2005 on the above subject

F.No. 2-8/2004-NS-II
Government of India
Ministry of Finance
Department of Economic affairs
(Budget Division)

North Block, Central Secretariat
New Delhi, 8th December 2005

Corrigendum

Subject:- Senior Citizens Savings Scheme,2004(SCSS) – Clarification-Reg.

The clarification issued by this office vide O.M. of even number dated the May 31,2005 on how to calculate interest for broken period( less than a quarter) is hereby modified as under.

For	Read
Interest for any period less than a quarter (as prescribed under the rules) shall be calculated as per the following formula: Number of days X yearly rate of interest 365 or 366 ( in case of leap year)	Interest for any period less than a quarter (as prescribed under the rules) shall be calculated as per the following formula: Number of Days in the period X Interest of the quarter Total number of days in the quarter

1. A number of complaints have been received regarding delay in crediting of interest on due dated under the senior Citizens scheme. It may be ensured that the interest on deposit is credited/paid on due dates as the objective of the schemes is to ensure regular flow of income to the depositors.
2. This issues with the approval of J.S.(Budget)

C.A. Baby
Accounts officer

To
1. The Department of Posts, Dak bhawan, Sansad Marg, New Delhi-110001
2. Shri Prabal Sen , Chief General Manager (DGBA) Reserve bank of India, Central office, Mumbai.