Senior Citizens Savings Scheme (SCSS) , 2004 of India

1. JAIIB / CAIIB
EXAMINATION
BANKING
AWARENESS
(पीपीएफ खाता खोलने हेतु Eligibility, Updated Features, Tax Benefits,
Interest Rate Chart, Maturity Amount Chart इत्यादि की पूरी जानकारी)

2. INTRODUCTION
• Senior Citizen Saving Scheme 2004 is a Government of
India Scheme which is targeted at senior citizens &
retired personnel.
• The scheme was launched in 2004 and updated vide
Government notification GSR 490 (E) dated 29th October
2004.
• The scheme is very popular among retirees as it provides
high yield and tax benefit under section 80 C of Income
Tax Act, 1961 along with a regular income.

3. SENIOR CITIZENS SAVINGS SCHEME, 2004
• It is a Government of India Product.
• Any depositor may open an TDR Account at any deposit office with
the amount of deposit in multiple of Rs. 1000/, along with age proof.
• A depositor may operate more than one account subject to the
condition that deposits in all accounts taken together shall not
exceed the maximum limit of Rs. 15 lakh and provided that deposits
by depositors shall be restricted to the retirement benefits or
Rupees Fifteen lakh whichever is lower.
• A depositor may open the account in individual capacity or jointly
with spouse.
• NRI's and HUF are not eligible to open an account under these rules.

4. ELIGIBILITY
An individual who has attained the age of 60 years
and above on the date of opening of an account.
An individual of the age of 55 years or more but less
than 60 years who has retired on superannuation or
under VRS can also open account subject to the
condition that the account is opened within one
month of receipt of retirement benefits and amount
should not exceed the amount of retirement benefits.
Retired Defence personnel above 50 years.
KYC documents (6 OVDs) including Aadhaar card &
PAN card should be obtained at the time of account
opening.

5. DEPOSITS AND WITHDRAWALS
• Period: All TDRs will be fixed for five years.
• Maturity: The deposit made will mature after the expiry of
five years from the date of opening of the account.
• Renewal: The depositor may extend the TDR Account for a
further period of three years after the maturity period of
five years. An application required within a period of one
year after the date of maturity period.
• Overdue Term Deposit: In case a depositor does not close
the account on maturity and also does not extend the
account, the account will be treated as matured and the
depositor will be entitled to close the account at any time
along with the interest at the rate of Post office Savings
Accounts from time to time will be payable on such
matured deposits up to the end of the month preceding the
month of the closure of the account.

6. PREMATURE CLOSURE OF ACCOUNT
• Withdrawal permitted after one year of opening the account but with
penalty.
• 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 the 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 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 balance paid to the depositor.

7. ROI / NOMINATIONRate of Interest:
• Interest Rate is fixed by the Ministry of Finance, Government of India
annually.
• Interest from the date of deposit payable at the end of each calendar
quarter e.g. 31st March / 30th June / 30th September / 31st December.
Compounding of interest not permissible.
• TDS on interest payable is applicable from begening.
• Deposits qualify for deduction u/s 80-C of Income Tax Act on the deposits
made in after 8th December 2007.
Nomination:
• The depositor may nominate a person or more than one person, at the
time of opening of the account or at any time after the opening of the
account but before its closure.
• Nomination made by the depositor can be cancelled or varied.

8. DEATH OF THE DEPOSITOR
• In case of death of the depositor before maturity the
account shall be closed and deposit refunded on
application in Form F along with interest to the
nominee or legal heirs in case the nominee has also
expired or nomination was not made as per rules.
• If the total amount including interest payable is up to
Rupees one lakh, it may be paid to the legal heirs on
production of (i) letter of indemnity (ii) an affidavit (iii)
a letter of disclaimer on affidavit (iv) a certificate of
death of the depositor on stamped paper in the form as
in Annexure to Form F.