Rule 303: Investment of superannuation fund money
Rule 303 sets how superannuation fund money may be held. Rules 301 to 315 govern approved superannuation funds under Part B of Schedule XI to the Act. Contributions and accruals may be kept in a Post Office Savings Bank account or a current or savings account with a scheduled bank, or used under Rule 307 for insurance or annuities. Anything else is invested as per the Ministry of Finance (Department of Financial Services) notification F. No. 11/14/2013-PR dated 2 March 2015, as amended.
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Bare law
Rule 303 - Investment of fund moneys
(1) All moneys contributed to the fund, or received or accrued by way of interest, or otherwise, may be–
(a) deposited in a Post Office Savings Bank Account in India; or
(b) deposited in a current account or a savings account with any scheduled bank; or
(c) utilised in accordance with rule 307 for making payments under a scheme of insurance or for purchase of annuities referred to in that rule;
(2) Any funds not deposited or used as mentioned in sub-rule (1) shall be invested in accordance with the notification of the Ministry of Finance, (Department of Financial Services) number F. No. 11/14/2013–PR, dated the 2nd March, 2015 published in the Gazette of India, Extraordinary, Part I, Section 1 as amended from time to time.
Rule breakdown
Permitted uses: Rule 303(1)
Post Office Savings Bank account in India.
Current or savings account with a scheduled bank.
Payments under a scheme of insurance or purchase of annuities as per Rule 307.
Other investments: Rule 303(2)
As per notification F. No. 11/14/2013-PR dated 2 March 2015 (Department of Financial Services), as amended.
Key takeaways
Bank deposits
Post office or scheduled bank accounts allowed.
Insurance or annuity
Use under Rule 307 allowed.
Investment pattern
Rest follows the 2015 notification.
Practical checklist
- Keep a copy of the 2015 notification, as amended, with the trust records.
Avoid
- Do not invest outside the notified pattern.
FAQs
Can superannuation money be kept in a savings account?
Yes, with a scheduled bank or a Post Office Savings Bank (Rule 303(1)).
Which notification governs other investments?
F. No. 11/14/2013-PR dated 2 March 2015 of the Department of Financial Services, as amended (Rule 303(2)).
Can money be used to buy annuities?
Yes, as per Rule 307.
Glossary
- Scheduled bank
- A bank in the Second Schedule to the RBI Act, 1934 and similar banks.
- Annuity
- Periodic payment purchased for a beneficiary.