Salient features of Senior Citizens Savings Scheme (SCSS) 2004
All branches of the Bank are authorized to accept deposits under SCSS 2004.
Who can open the account?
- Individual completed 60 years of age can open the account. 55 Years or more, but less than 60 years for those, who have retired under Voluntary Retirement Scheme or Special Voluntary Scheme or on Superannuation subject to condition that the Account is opened by such individual within one month of the receipt of retirement benefits, with proof of date of disbursal of such retirement benefits. The deposit amount, in such case, is restricted to the retirement benefits received or Rs.15/- lakhs, whichever is less. Retirement Benefits include payment received on account of Provident Fund, Gratuity, Leave Encashment, etc.
- Retired Personnel of Defence Services (excluding Civilian Defence Employees) are eligible to subscribe under the Scheme at the age of 50 years and above. In case of a joint account, the age of the first applicant / depositor is the only factor to decide the eligibility to invest under the scheme. There is no age bar / limit for the second applicant / joint holder i.e. spouse.
- The whole amount of investment in account under the scheme is attributed to the first applicant / depositor only. As such the question of any share of the second applicant / joint holder i.e. spouse in the deposit does not arise. Both the spouses can open individual and / or joint accounts with each other with the maximum deposit up to Rs. 1500000/- (Rs. Fifteen lakh only) each provided both are individually eligible to invest under the relevant provisions of the scheme.
Tenure of the Scheme:
- 5 Years, which can be extended by 3 more years. Extension of Account shall be deemed to have been made from the date of maturity irrespective of date of application, within one year from the date of maturity.
- As Notified by the Ministry of Finance on quarterly basis.
Frequency of Computing & Payment of Interest:
- Quarterly ending – March, June, September and December
Deduction of Tax on Interest at Source (TDS): TDS applicable
Investment to be in multiple of: Rs.1,000/-
Maximum Investment Limit: Rs.15/- lakh
Facility of Premature Withdrawal:
- The Depositor may be permitted to withdraw the deposit and close the Account at any time after the expiry of one year from the date of opening of the account subject to following conditions.
- In case the Account is closed after the expiry of one year, but before the expiry of two years from the date of opening of the Account, an amount equal to one and a half percent of the Deposit shall be deducted and the balance paid to the Depositor.
- In case the Account is closed on or after the expiry of two years from the date of opening of the Account, an amount equal to one percent of the Deposit shall be deducted and the balance paid to the Depositor.
- The Depositor availing the facility of extension of the account may be permitted to withdraw the deposit and close the Account at any time after the expiry of one year from the date of extension of the account without any deduction.
Loan/Transferability/Tradability facility: Not available
Nomination Facility: Available
Mode of Holding: Generally Single, Joint only with Spouse
Applicability to NRI and HUF’s: Not eligible to open the account under the scheme.
Mode of Deposit:
- In cash, may be accepted if the amount of deposit is less than Rs. One lakh
- When a deposit is made by Cheque or Demand Draft, the date of deposit will be date of realization of Cheque / D.D.
- When a deposit is made by means of outstation Cheque / Demand Draft, collection charges shall be paid along with the deposit and the date of realization of Cheque / D.D. will be the date of deposit
- The depositor may at the time of opening of the account or at any time after opening of the account, but before its closure, nominate a person / persons. The nomination made by the depositor may be cancelled or changed by a fresh nomination.
Interest on Deposit:
- In case any of the dates of interest payment fall on Sunday or a Holiday, the previous working day shall be deemed to be the due date for the purpose of interest payment.
Closure of Account:
- In case the depositor does not close the account on maturity and also does not extend the account, the account should be treated as matured and the depositor will be entitled to close the account at any time subject to the condition that Post Maturity Interest at the rate applicable for Savings Account from time to time should be payable for the period beyond maturity.
- In case of death of the depositor before maturity, the account should be closed and deposit be refunded along with interest till the end of the month preceding the month, in which refund is made, to the nominee or legal heirs, as the case may be.
- In case of joint account or where the spouse is the sole nominee, the spouse may continue the account on the same terms and conditions, as per rules. In case the spouse does not continue the joint account, the account should be closed and deposit be refunded along with interest, as above.
Deposits by Non-Resident Indians (NRIs) and Hindu Undivided Families (HUF):
- The Non Resident Indians and Hindu Undivided Family are not eligible to open account under this Scheme. If a depositor subsequently becomes a Non Resident Indian during the currency of the account, the account may continue till its maturity on non-repatriation basis and the account should be marked as a Non Resident Account. The Account continued under the above proviso, should not be extended for any further period.
Accounts opened in contravention of rules:
- Wherever it comes to notice that an account has been opened in contravention of the rules, the account should be closed immediately and the deposit in the account, after deduction of the interest, if any, paid on such deposit, should be refunded to the depositor