Interest on Senior Citizens Welfare Fund

## Report on Senior Citizens Welfare Fund Interest Rate Notification **1. Executive Summary:** This report analyzes a notification from the Ministry of Finance, Department of Economic Affairs, regarding the interest rate applicable to deposits made under the Senior Citizens Welfare Fund. The notification, dated June 20, 2025, announces an interest rate of 3.35% for deposits made under the fund between April 1, 2024, and March 31, 2025. This report provides an overview of this amendment, its background, key changes, affected stakeholders, inferred implementation aspects, and potential impact. **2. Introduction:** This report aims to provide a concise and informative overview of the notification F. No. 13202014NS, pertaining to the Senior Citizens Welfare Fund interest rate. The analysis is based solely on the information provided within the notification text. **3. Policy Overview:** * **Amendment:** This notification amends the Senior Citizens Welfare Fund, originally announced in Notification No. G.S.R. 322E dated March 18, 2016. * **Core Objective(s):** The objective, inferred from the text, is to define and adjust the interest rate offered on deposits made to the Senior Citizens Welfare Fund. This likely serves to manage the fund's attractiveness and sustainability. **4. Background and Rationale:** The notification indicates a need to adjust the interest rate offered by the Senior Citizens Welfare Fund for a specific period. The reason for this adjustment (to 3.35%) is not explicitly stated but could be related to prevailing economic conditions, market interest rates, or the Fund's financial performance. The adjustment appears to be for a set period (April 1, 2024 to March 31, 2025), suggesting it may be a temporary measure or a periodic review. **5. Key Provisions / Changes:** * **Specific Part Changed:** The notification modifies the interest rate applicable to the deposits under the Senior Citizens Welfare Fund. * **New Rule/Provision:** The new interest rate is set at 3.35% (Three point three five percent) for deposits made between April 1, 2024, and March 31, 2025. * **Difference/Effect:** This change directly affects the returns earned by senior citizens on their deposits within the specified period. It establishes the return they receive on their savings within the fund. **6. Target Audience and Stakeholders:** The primary target audience is senior citizens who have deposited or plan to deposit funds into the Senior Citizens Welfare Fund. Stakeholders also include: * The Ministry of Finance, Department of Economic Affairs, responsible for overseeing and administering the fund. * Financial institutions involved in managing or distributing the fund. **7. Implementation Aspects (Inferred):** * **Responsible Agency:** The Ministry of Finance, Department of Economic Affairs, is responsible for the notification and, by extension, for overseeing the implementation of the revised interest rate. * **Timelines:** The notification specifies a clear timeline: the 3.35% interest rate is applicable from April 1, 2024, to March 31, 2025. * **Implementation of Changes:** The rate must be implemented by those managing the Fund. **8. Expected Outcomes / Impact of Changes:** The likely intended outcome of this change is to adjust the attractiveness and sustainability of the Senior Citizens Welfare Fund. Depending on whether the previous rate was higher or lower, this change could either encourage or discourage deposits into the fund. The impact on senior citizens will be a change in their investment returns (interest earned) on their deposits within the Fund. **9. Conclusion:** The notification F. No. 13202014NS announces a revised interest rate of 3.35% for deposits made under the Senior Citizens Welfare Fund between April 1, 2024, and March 31, 2025. This change directly impacts the returns earned by senior citizen depositors and is likely intended to manage the fund's attractiveness and financial health. The change is significant as it directly effects the returns earned on savings intended for retirement.

Key Entities Referenced