Govt issues Clarification in operation of Senior Citizens’ Savings Scheme

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) The rate of interest that is applicable to the SCSS scheme must be paid up until the date of the account holder’s death in circumstances where the SCSS account holder or account holders die away and the account is being closed at the request of the nominee or legal heir. After that, from the date of the account holder’s death until the day the account is finally closed, the interest rate applicable to Post Office Savings Accounts will be paid.

ii) The premature closure clause is unaffected by the death of the SCSS account holder. Only when the owner of the SCSS account requests the closure of their own SCSS account prior to the maturity period is the premature closure of the account relevant. In certain instances of early account cancellation, a fine in accordance with SCSS Rule 6 shall be assessed.