Indian Air Force Benevolent Association has been operating Centralised Investment Scheme (CIS) wef 1992. The attractive interest rates on deposits under this scheme is being paid half yearly on a non cumulative basis to the depositors. The surplus funds of NPFs across the IAF are invested with IAFBA under this scheme.
  • Procedure for deposits
The NPFs of the units will remit the surplus funds by way of DD/Bankers/RTGS cheque drawn in favour of "IAFBA" payable at New Delhi. Minimum deposit amount will be Rs 1,00,000 /- . Amount over Rs 1 Lakh it will be in multiple of Rs 10,000 /-. Deposits Receipt(DR) in the name of the NPF will be issued from the date of realisation of cheques / DD amounts . DRs are sent alongwith the payslips of every month. Deposits will be accepted only from those NPFs which are within purview of the IAP 3503.
  • Deposit Receipt
A separate deposit receipt in the name of the NPF will be issued for each deposit made. The deposit receipt will also specify the date of deposit , maturity, cheque/DD details along with other terms and conditions. The receipt will be signed by the treasurer and secretary of IAFBA.
  • Period of Investment and Payment of Interest
The period of deposit will be 5 years from the date of realisation of cheque/DD . Post dated half yearly cheque of interest will be issued to the concerned NPFs every year at the rate decided on an yearly basis by the association . Instead of individual cheque for each FDR a consolidated cheque in the name of each NPF will be issued for the interest of all FDRs (accept those deposits maturing within the half yearly period). The interest details of each FDR will also be attached with cheque.
  • Rate of Interest
The prescribed rate of interest under Centralised Investment Scheme is 8.5% wef 01 Apr 16.
  • Renewal / Withdrawl
In case of Renewal/Withdrawl of the deposit on maturity, unit NPFs are to forward the original deposit receipt duly signed by OIC NPF and Commanding Officer at least two months before the date of maturity. IAFBA will issue "at par" cheques to the unit NPF for the amount due for the principal and interest. On renewal, fresh deposit receipt will be issued for another five years period. Advance interest cheque for the year also will be forwarded alongwith the receipt.
  • PreMature Withdrawl
The rate of interest in case of pre mature withdrawl of the deposits will be worked out on the following basis. The interest paid in advance will be adjusted from the principal amount payable on withdrawl. The post dated cheques held against the deposit are also to be surrendered to IAFBA alongwith the deposit receipt.
Sl No
Less than one year
5 %
Less than two years but above one year
2% less than the prescribed rate for the deposit
Less than three years but above 2 years
1% less than the prescribed rate for the deposit
Above three years
No deduction
  • General
Each Unit/NPF is given a file number. The same is printed on each deposit receipt. Unit/NPF while corresponding with IAFBA regarding deposits are to specify the file number and deposit receipt number. For the file number upto 8999 all the deposit receipts , cheques etc will be forwarded to C Adm O/S ad O of the unit. Incase of file number ranging 9000 and above the same will be forwarded directly to the concerned NPFs.
  • Frequently Asked Questions
Q. Interest amount is not same as calculation done by NPF/Unit.
A. One Possible reason may be calculation of no of days of leap-year.


Q. New FDRs are not received in respect of Fresh Amt/Renewal after remitting the amount to IAFBA.
A. New FDRs are dispatched every month along with the pay-slips.


Q. Units/NPFs send their FDRs for clubbing, but clubbing is not taken into consideration why ?
A. Clubbing is effective from 1st Apr but for this FDRs must be given to IAFBA before receiving the yearly post dated interest cheques.


Q. Units/NPFs are not able to get the FDRs in time which are sent for renewal ?
A. Only those FDRs are renewed where maturity date is within a month and second reason may be that sometimes units/NPFs do not send their original FDRs along with renewal request this is also the reason of delay and increase of correspondence.


Q. Units/NPFs are not able to get the withdrawal amount in time why ?
A. Sometimes units/NPFs do not put the signature of Oi/c NPF and AOC/Stn Cdr on FDRs which are sent for withdrawal. And also units/NPFs do not return advance interest cheques along with FDRs for cancellation. It unnecessarily increases correspondence and delay in payment.


Q. Units/NPFs do not receive fresh FDRs inspite of the fact that they have sent the money for this purpose why ?
A. It may be due to, not mentioning the name of NPF for whom FDR is to be made.