SENIOR CITIZENS SAVINGS SCHEME
Opening of Account:
The account may be opened by individual who has attained the age of 60 years on the date of opening of an account, or
(ii) The account under the scheme may be opened by an individual who has attained the age of 50* years or more but less than 60 years, and who has retired on superannuation or otherwise on the date of opening of an account under these rules, subject to the condition that the account is opened by such individual within one month (three Months*) of the date of receipt of the retirement benefits and proof of date of disbursal of such retirement benefit(s) along with a certificate from the employer indicating the fact of retirement on superannuation or otherwise, retirement benefit, or *admissible financial assistance to an eligible government employee who died in harness, employment held and period of such employment with the employer, is attached with the application form.
Provided further that the retired personnel of Defence Services (excluding Civilian Defence Employees) shall be eligible to open account under the scheme if he/she attained age of 50 years subject to the fulfilment of other above specified conditions.
(ii) The account under the scheme may be opened by an individual who has attained the age of 50* years or more but less than 60 years, and who has retired on superannuation or otherwise on the date of opening of an account under these rules, subject to the condition that the account is opened by such individual within one month (three Months*) of the date of receipt of the retirement benefits and proof of date of disbursal of such retirement benefit(s) along with a certificate from the employer indicating the fact of retirement on superannuation or otherwise, retirement benefit, or *admissible financial assistance to an eligible government employee who died in harness, employment held and period of such employment with the employer, is attached with the application form.
Provided further that the retired personnel of Defence Services (excluding Civilian Defence Employees) shall be eligible to open account under the scheme if he/she attained age of 50 years subject to the fulfilment of other above specified conditions.
Provided further that the spouse of the government employee shall be allowed to open an account under this Scheme, if the government employee who has attained the age of fifty years and has died in harness, subject to the fulfilment of other specified conditions.
Explanation:- For the purposes of this proviso, the Government Employee includes all Central and State Government employees eligible for retirement benefit or death compensation."
Note: Calculation of 30 days (3 months*) after retirement: A question has been raised as to how to calculate the 30(3 months*) days period after the receipt of retirement benefits when benefits are received in piece meal on different dates. It is clarified that the facility of opening multiple accounts is already available under the scheme. The retired person can open more than one account on receipt of the retirement benefits in piece meal provided the relevant account is opened within one month of the receipt of the prescribed retirement benefit.
(2). The account may be opened in individual capacity or jointly with spouse (Spouse means Husband or Wife). It is not necessary for the spouse to be of 60 years or 55(50) years, as the case may be. There is no age bar limit for the 2nd applicant/Joint holder (spouse). In case of joint account, the account may be either Joint A type or Joint B type. This may be indicated on the top of the application form. The whole amount of deposit in a joint account shall be attributable to the first account holder only.
*See amendment vide SB Order No. 22/2023 and its corrigendum.
(3) If a depositor subsequently becomes NRI during the currency of the account, the account may be continued till its maturity on a non-repatriation basis. Such account shall not be extended beyond the maturity period, no interest shall be paid after maturity in such cases.
(4) Limits: The individual may open one or more accounts with a minimum deposit of Rs. 1000/- and in the multiple of Rs. 1000/-, subject to a maximum of Rs. 15 lakhs. (*30 Lakhs)
In case the account is opened under the category of VRS employees (below 60 years of age), the deposits made by such depositors shall be restricted to the retirement benefits received by them or rupees thirty lakh, whichever is lower.
Explanation: For the purposes of this sub-paragraph, "retirement benefits" means any payment due to the account holder on account of retirement on superannuation or otherwise and includes Provident Fund dues, retirement or superannuation or death gratuity, commuted value of pension, cash equivalent of leave, savings element of Group Savings Linked Insurance Scheme payable by the employer on retirement, retirement-cum- withdrawal benefit under the Employees' Family Pension Scheme and ex-gratia payments under a voluntary or a special voluntary retirement scheme and in case, if the employee died in harness, the retirement benefits" shall also mean the above mentioned benefits to employee who died in harness.'.
(5). If at the time of opening of the account, the concerned official/supervisor of the post office notices that a deposit exceeds the ceiling prescribed, he/she shall request the depositor in writing to withdraw the excess deposit immediately. On this excess amount, the interest shall be paid at the rate applicable from time to time to the Post Office Savings Account and the interest shall be paid from the date of deposit of excess amount to the date of refund. The amount of excess interest, if any, already paid to the depositor, shall be deducted.
Provided that after closure of the existing account or accounts, new account or accounts may be opened again as required by the depositor subject to the maximum deposit limit
Provided further that in case of a joint account, or where the spouse is the sole nominee, the spouse may continue the account by applying to the accounts office, on the same terms and conditions as specified under this Scheme, if the spouse meets eligibility conditions under the Scheme on the date of death of the account holder.
(6) In case of joint account, the whole amount of investment in the account under the scheme is attributed to the 1st Account Holder depositor only. The question of any share of the 2nd applicant/joint account holder, therefore, does not arise. Though the Joint account is a Joint B Type Account, the first account holder only shall operate the account under this scheme.
(7). Both the spouses can open individual and/or joint accounts with each other with the maximum deposits up to Rs.15 lakh (30 lakhs), provided both are individually eligible to invest under the relevant provisions of the rules governing the scheme.
Opening of Account Process:
The depositor may make an application in SB-AOF along with KYC documents and KYC Form along with the amount of deposit as per the pay-in-slip in SB-103, duly filled in, along with age proof and joint photograph with spouse in case of joint account. PAN Number shall be entered in the Application Form.
(2). In case the applicant has no PAN Number, the same shall be indicated in the application form and the applicant(s) should furnish Form-60 or Form-61 as per the Income Tax Act, 1961 as amended from time to time.
(3). Counter PA shall invoke menu CSCAOP for opening of account in Finacle. Once the account is opened, SB-AOF along with supporting documents will be put up to Supervisor for approval. Supervisor will use the menu CSCAOPV menu for verification of account opened.
(4). The depositor may operate more than one account subject to the conditions that the deposits in all the accounts taken together shall not exceed the maximum limit of Rs.15 lakh.(30 lakhs)
Note: Deposit in SCSS Account can be made either by cash or cheque / demand draft etc. Limit of deposit by cash up to Rs. 1 Lakh has been discontinued w.e.f. 18.12.2019.
SCSS account can be opened through POSB net banking also by senior citizens of age 60 and above.
The spouse of a deceased employee who had completed 50 years of age at the time of death can also open an account.
If the spouse is a joint holder of the account or the sole nominee in the account, he/she can continue the account till maturity date if meets the eligibility conditions including limit of investment prescribed.
******SB Order No. 22/2023**********and SB Order No. 6/2023
As per SB Order 12/2021, in case of SCSS Account, since the whole amount of deposit is attributable to the first account holder only as per Rule 3(6) of Senior Citizens' Savings Scheme 2019, only withdrawal of quarterly interest shall be allowed to be carried out by either of the joint depositors or survivor in case of Joint B Type account. In respect of remaining operations of Joint B Type SCSS Account, either the first account holder may do all the operations or the signature of the first account holder is mandatory in all application forms of various operations of account.
Click here for SB order No. 12/2021
