CENTRALIZED INVESTMENT SCHEME
Q 1. ABOUT CIS?
Ans. Indian Air Force Benevolent Association (IAFBA) has introduced Centralised Investment Scheme (CIS) for pooling of surplus funds of Commands/Units NPF for re-investment at a rate of interest higher than that available to the public under Fixed Deposit Scheme of PSUs/FI.
Q 1. INTEREST RATES FOR PREMATURE WITHDRAWAL?
Ans. Period of investment is 5 years however NPFs can withdraw prematurely. Interest will be adjusted as per table below. In case of withdrawals, the rates will be applicable only to that amount that is being withdrawn and not to the whole amount of deposit:-
|
|
Tenure
|
Rate of Interest
|
| (a) |
3 Years - 5 Years |
No Loss, ROI same as present prescribed. |
| (b) |
2 Years - 3 Years |
ROI 1% less than the present prescribed rate of interest. |
| (c) |
1 Year - 2 Years |
ROI 2% less than the present prescribed rate of interest. |
| (d) |
30 Days - 1 Year |
ROI 3% less than the present prescribed rate of interest. |
Q 3. Who can invest under CIS?
Ans - The scheme is open to only the NPF’s of IAF and such funds of Tri services whose income is exempt from Income Tax. (I.T. ACT 1961). Under this scheme Command HQrs/Units can forward the surplus amount of their welfare funds to IAFBA for investment under Centralised Investment Scheme (CIS). The details of the scheme is provided in DACL/10/2020. IAFBA does not accept individual investments.
Q 4. What is the procedure of Investment?
Ans - The surplus funds of all NPFs of Wings/Stations can be remitted to IAFBA by way of Demand Drafts / Electronic Fund Transfer (RTGS/NEFT). Each deposit should not be less than ¿1,00,000/- (Rupees One Lakh). Amount over ¿1,00,000/- should be in multiples of ¿10,000/-. Demand Drafts should be drawn in favour of “IAFBA” and payable at “New Delhi”. In case of Electronic Fund Transfer, the fund may be transferred to current account number 1961201000501 of IAFBA, IFSC Code is CNRB0001961 and bankers is “Canara Bank, Subroto Park, New Delhi – 110010”. Unit NPFs are to inform the name of their banker, bank A/C No, name of Unit and NPF through Fax or Email (IAFBA[at]yahoo[dot]com) after each Electronic Fund Transfer, the format is a available in the IAFBA website download section and it to forwarded under covering letter. For first time investment of any NPF, the command sanction letter of opening that NPFs should be forwarded alongwith above details.
Q 5. How to track when FDR is not received?
Ans. The Association will issue "E-FDR" for the amount remitted in log-in IDs of station authorities (AOC and C Adm O) at IAFBA website (www.iafba.iaf.in). No hard copy of FDR will be forwarded to NPFs excepts for NPFs not having AFNET connectivity.
Q 6. What to do when fund is debited from the bank and still FDR is not Received?
Ans - Fund may have been received by IAFBA, but in the absence of NPF details, amount can not be BOC and FDR can not be generated. NEFT details and NPF details fill online or Fax to this office immediately as per format uploaded on download section at IAFBA website.
Q 7. What is the procedure for Clubbing the FDR?
Ans - All Fixed Deposit Receipts (FDRs) of one NPF will be clubbed into one FDR on 01 Apr every year. Date of investment for all clubbed FDRs will be Apr/01 of the year for all purposes. In case of withdrawals units may prefer FDRs based on the requirements as per original deposit and not from the clubbed date.