SCSS DEATH CLAIMS AND THEIR PROCESSING
In case of death of the depositor before maturity, the account shall be closed, and deposit shall be refunded along with interest at the rate of interest applicable to SCSS till date of death and at the rate of Post Office Savings Account interest till the date of final closure of the account.
In case of a Joint account, or where the spouse is the sole nominee, the spouse may continue the account with the same terms and conditions as specified under this Scheme, if the spouse meets eligibility conditions under the scheme on the death of the account holder. Where both the spouses have opened separate account or accounts under this Scheme and either of the spouses dies during the currency of such account or accounts, then such account or accounts standing in the name of the deceased account holder shall not be continued and shall be closed.
As per rule 7(2) of Senior Citizens Savings Scheme, 2019 in case of death of account holder the “Interest for the period between the date of death of the account holder and date of closure of the account shall be paid at the rate applicable on Post Office Savings Account for the balance held in the account”. Accordingly, the interest rate is to be configured through the HINTTM menu in Finacle by the concerned CBS post office in case of SCSS death claim closure before the closure of such account.
The following procedure is to be followed by the CBS post office in Finacle.
(i). Counter PA shall invoke menu HINTTM; Select Function = M – Modify; Entity Type = A-Accounts; Entity ID = SCSS Account number; Go; Interest Table Code = SBRAT; Start Date = Date of death of account holder + 1 (For example, in case depositor dies on 03-04-2021, date to be entered as 04-04-2021); End Date = 31-12-2099 and then click on Submit
(ii). The Supervisor shall invoke menu HINTTM; Select Function = V – Verify; Entity Type = A-Accounts; Entity ID = SCSS Account number; Go. The supervisor shall verify the account number and date of the applicable SB Interest rate and then click on Submit.
Note1: After configuration of SB Interest rate from the date of death, counter PA shall follow the procedure for account closure.
Note2: During closure through HCAACTD, the current BOD date is to be entered as the Closure Value Date. Then, interest till the date of death will be calculated @ SCSS rate and interest from the next day to date of closure will be calculated @SB rate.
Note3: If the SCSS account has already matured and the date of death falls before maturity, then there is no provision to change the rate of interest in HINTTM. In such cases interest is to be recovered (if any) and needs to be calculated by the concerned post office and HIARM entry is to be done by In-charge, SBCO after getting approval from Head Postmaster/Divisional Head with applicable date as BOD date for Debit Interest & Credit run indicator.
Note4: Amount entered as IAR will get recovered from principal amount during closure. Trial closure must be done for checking whether ‘Adjusted Amount’ shown in the Closure result screen is in minus value, before proceeding with actual closure.
