Dear Balaji kale,
I am not so sure as whether the calculation of interest is correct. As per calculation indicated by you, the interest is COMPOUNDED on a MONTHLY BASIS. We have received a notice for June 2017, dated 16/12/2017, in which the interest amount is shown as Rs. 82/- on a contribution amount of Rs. 960/- . From the amount shown, it seems that the rate of interest is 1.5% for first 3 months & 2% per month thereafter.