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For the convenience of senior citizens, Government now proposes to operationalise the Senior Citizens Savings Scheme (SCSS) through authorized public sector banks also, in addition to the post offices. This would enable senior citizens to open an account under the Scheme at the nearest post office or at a branch of a public sector bank of their choice. Requests have been received by the Government from senior citizens and also legislators to allow designated banks to accept deposits under this scheme. All other existing small savings schemes available exclusively through post offices will continue to be operated only through post offices.
In pursuance of the announcement made by the Government in the Budget 2004-05, the scheme was notified with effect from 2nd August, 2004.
The main features of the scheme are as follows:-
Citizens of 60 years of age and above are eligible to invest. Single or joint account (with spouse only) can be opened.
Citizens who have retired under a voluntary or a special voluntary retirement scheme and have attained the age of 55 years are also eligible, subject to specified conditions.
Deposits in multiples of Rs.1000 subject to a maximum of Rs.15 lakh will be allowed.
The deposit will carry an interest of 9% per annum (taxable).
The maturity period of the deposit will be five years, extendable by another three years.
Premature withdrawal after a period of one year will be allowed, subject to some deductions.
The investments in the scheme will be non-tradable and non-transferable. However, nomination facility will be available.
Non-Resident Indians and Hindu Undivided Families are not eligible to invest in the scheme.
The details of the Senior Citizens Savings Scheme Rules, 2004 may be accessed at Ministry of Finance website <finmin.nic.in>.
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