On 21-06-2022, the Small Industries Development Bank of India notified Small Industries Development Bank of India (Defined Contributory New Pension) [Amendment] Regulations, 2022 in order to amend Small Industries Development Bank of India (Defined Contributory New Pension) Regulations, 2012. These Amendments will have a retrospective effect and comes into force with effect from January 01, 2020.
Key points:
- The Regulation 4.1.1 deals with Rate of contributions/subscriptions provides that the subscriber employees will have to contribute a fixed percentage of Pay and DA which will be decided by the bank from time to time, whereas previously they had to contribute 10%. The provision states that the bank will make contribution/subscription at the rates as decided by itself from time to time, whereas previously the Bank had to match the amount paid by the Subscriber Employee.
- The newly amended Regulation 5.2 states that instead of the contributions/subscriptions including a 10% of Pay and Dearness Allowance (DA) in the case of default, the contributions/subscriptions will now include a fixed percentage of Pay and DA as decided by the Bank from time to time and the prevailing rates on the respective date(s) will apply.