Short answer

Depositories credit money to your bank account for the following reasons:

  • Interest credit on Sovereign Gold Bond (SGB): SGBs generate a fixed yearly interest rate of 2.50% on your initial investment amount. The depositories will deposit the interest twice annually into your bank account and inform you through email.

CDSL

NSDL

  • Dividends: You receive dividend payments from companies whose shares you hold.
  • Partial entitlement from corporate actions: During corporate actions like bonus issues or stock splits, you may receive money in your bank account instead of fractional shares when you are entitled to less than one full share.
  • Interest received from State Development Loans(SDL): You receive interest from State Development Loans (SDL). You can learn more about SDL by visiting the Government securities module on Arrow learning resources by iRage.