National Small Saving Fund (NSSF)

All deposits received under National Saving Schemes are credited to the National Small Saving Fund (NSSF) - a public account established w.e.f 1.4.1999. All withdrawals by the depositors are made out of the accumulations in the fund. The balance in the fund is invested in special securities of the state and Central Governments as per the norms decided by the central Government from time to time. With effect from 1.12.2011, minimum 50% of the net collections in a State or Union Territory with legislature are being invested in special securities issued by the concerned State or Union Territory Government securities or lent to other Union/ or agencies fully owned by the Central Government. After implementation or recondition of 14th Finance Commission, State Government except Arunachal Pradesh, Delhi, Kerala, Madhya Pradesh have withdrawn from NSSF loans accumulation in the fund is being invested in Central Government Securities, Infrastructure Companies, agencies fully owned by Central Government or Public Sector Undertaking as decided by the Central Government from time to time.