Gujarat State Financial Services Ltd. (GSFS) is a wholly owned subsidiary of Government of Gujarat in which Government of Gujarat has 100% holding and is registered with R.B.I as a Non Banking Finance Company. It has been given the mandate by the State Government to manage the surplus funds of various Government of Gujarat controlled organizations and PSUs of the State. Thus it acts as an in- house fund manager to the various state owned entities. The State Government has directed all the State Government owned entities to park all their surplus funds with GSFS. In view of this, GSFS offers two options to the state owned entities for placement of their surplus funds, namely,
- Placement for a fixed term having different tenors. GSFS deploys these funds primarily with the GoG entities which requires funds for short/medium/longer tenure at a competitive rate, and
- For very short term wherein the concerned entities may place the funds for even one day and thereby earn interest on it. GSFS deploys these funds in the liquid instruments in order to honour the commitments of its clients. It provides fix interest which is presently 5.50% p.a. w.e.f. 10th January, 2017 to the concerned entities. This way, GSFS enables the state owned entities to earn interest on their funds for even one day which otherwise would have remained idle in the current accounts with banks.