Dying of account holder to not set off computerized closure of Senior Citizen Saving Scheme Account
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Dying of account holder to not set off computerized closure of Senior Citizen Saving Scheme Account

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Finance Ministry has clarified that closure of Senior Residents’ Financial savings Scheme (SCSS) accounts on the dying of the account holder is not going to be handled as untimely closure.  

The Ministry has issued this clarification because it got here to know that some working businesses are closing such accounts treating it as untimely closure.

SCSS is a small saving scheme with larger rate of interest compared to different small saving schemes. It may be opened in a put up workplace.

A press release issued by the Finance Ministry stated that untimely closure clause doesn’t set off on account of demise of the SCSS account holder.

“The untimely closure of the account is relevant solely when the SCSS account holder requests for closure of personal SCSS account earlier than the maturity interval. In such instances of untimely closure of the account, a penalty shall be levied as talked about within the rule,” it stated.

Additional, in instances the place the SCSS account holder/s passes away and the account is being closed on request of the nominee/authorized inheritor, the speed of curiosity as relevant on SCSS scheme shall be paid until the date of demise the account holder. Thereafter, the rate of interest relevant on Put up Workplace Financial savings Account shall be paid from the date of demise of the account holder until the date of ultimate closure of the account.

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Account underneath the Senior Residents’ Financial savings Scheme may be opened by a person after attaining the age of 60 years or above. In case of VRS, particular VRS or retirement underneath superannuation, the age restrict may be lowered to 55 years.

Additionally, retired personnel of Defence Companies (excluding Civilian Defence workers) might open an account on attaining the age of fifty years. A depositor might open an account individually or collectively with partner. Minimal deposit in SCSS is ₹1000 with most deposit of ₹15 lakh.