The Reserve Bank of India has asked public sector banks and government accounts department to disburse interest of 8.7 per cent to account holders of Special Deposit Scheme (SDS) 1975 for calender year 2015.
"We advise that interest for the calendar year 2015 may be promptly disbursed to the SDS account holders at 8.7 per cent per annum from 1st January 2015 to 31st December 2015," RBI said in a notification.
RBI said the payment can be done through electronic mode such as ECS/NECS/NEFT/RTGS or by way of account payee cheques on January 01, 2016 itself.
Further, it asked them to issue instructions on the same to all their deposit offices.
SDS was introduced in July 1975 for the benefit of non government provident, superannuation and gratuity fund for a period of ten years. Subsequently, the scheme is being extended from time to time.
With effect from April 1, 2013 and until further orders, SDR bear interest at 8.7 per cent per annum.
