PIB – Clarification in operation of Senior Citizens Savings Scheme

Clarification in operation of Senior Citizens Savings Scheme

Ministry of Finance

Clarification in operation of Senior Citizens’ Savings Scheme

29 SEP 2022

In the operation of Senior Citizens Savings Scheme (SCSS), it has been noticed in few cases on the death of the account holder, operating agencies are closing the SCSS account by treating it as premature closure.

In this context, attention is drawn to Rule 7(2) of SCSS, and the following is clarified:

i. in cases where the SCSS account holder/s passes away and the account is being closed on request of the nominee/legal heir, the rate of interest as applicable on SCSS scheme shall be paid till the date of demise the account holder. Thereafter, the interest rate applicable on Post Office Savings Account shall be paid from the date of demise of the account holder till the date of final closure of the account.

ii. Premature closure clause does not trigger on account of demise of the SCSS account holder. The premature closure of the account is applicable only when the SCSS account holder requests for closure of own SCSS account before the maturity period. In such cases of premature closure of the account, a penalty shall be levied as mentioned in the rule 6 of the SCSS.

Source: PIB