PREMATURE CLOSURE OF SCSS ACCOUNTS
Premature Closure of Account:
(1) The account holder may close the account prematurely at any time after account opening by submitting an application in Form SB-7B subject to the following conditions.
(i) In case, the account is closed before one year after the date of opening account, interest paid on the deposit in the account shall be recovered from the deposit and the balance shall be paid to the account holder.
(ii) In case the account is closed after the expiry of one year but before the expiry of two years from the date of its opening, an amount equal to one and a half per cent of the deposit shall be deducted and the balance shall be paid to the account holder.
(iii) In case the account is closed on or after the expiry of two years from the date of its opening, an amount equal to one per cent of the deposit shall be deducted and the
balance shall be paid to the account holder.
balance shall be paid to the account holder.
(iv) The account holder availing the facility of extension of account may withdraw the deposit and close the account at any time after expiry of one year from the date of extension of the account without any deduction. (See Amendment below)
(v). In case of pre-mature closure, interest on deposit shall be payable up to the date preceding the date of pre-mature closure after deduction of penalty as specified in the sub-paragraph (1).
(vi). For closing account before maturity in Finacle, procedure laid down for pre-mature closure of MIS shall be applicable.
(vii). 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.
(viii). 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.
Amendment as per SB Order No.22/2023:
(i) In case the account is closed before expiry of one year from the date of extension as mentioned in sub-paragraph (2), an amount equal to one per cent of the deposit shall be deducted and the balance shall be paid to the account holder.
For details of Lock-up periods in each POSB scheme and the impact of premature closure, please Click here
