GOVERNMENT OF INDIA
Ministry of Finance
DEPARTMENT OF ECONOMIC AFFAIRS
RAJYA SABHA STARRED
TO BE ANSWERED ON THE SEPTEMBER 06, 2011
Implementation of SCSS, 2004 in Banks
*469. SHRI RAJEEV CHANDRASEKHAR:
Will the MINISTER OF FINANCE be pleased to state:
(a) The salient features of the senior citizens scheme (SCSS), 2004;
(b) Whether it has come to the notice of the reserve bank of India (RBI) that some of the banks do not implement senior citizens saving scheme (SCSS), 2004, particularly in case of retired army personnel and have denied the facility of SCSS to some of them in contravention of the instructions;
(c) If so, the reasons therefor;
(d) The steps being taken by government to ensure that such incidents do not take place in future and government’s order are implemented scrupulously; and
(e) The details of action taken against such banks?
SHRI PRANAB MUKHERJEE
(a) To (e): A statement is laid on the table of the House
STATEMENT REFERRED TO IN REPLY TO THE RAJYA SABHA STARRED QUESTION NO.469 DATED
SEPTEMBER 06,2011BY SHRI RAJEEV CHANDRASEKHAR
REGARDING IMPLEMENTATION OF SCSS, 2004 IN BANKS
(a) The salient features of Senior Citizens Savings Scheme,2004 are as follows:
i) Senior citizens above 60 years of age are eligible to invest under the scheme.
ii) Persons retired on superannuation or otherwise and attained the age of 55 years or more are also eligible.
iii) Retired personnel of Defence Services (excluding Defence Civilians) are eligible to subscribe to the scheme irrespective of age limit.
iv) Joint account is permissible only with spouse.
v) Nomination facility is available in respect of both individual and joint accounts.
vi) Maximum deposit limit of `15 Lakh
vii) Interest at the rate of nine per cent per annum (taxable) is payable quarterly
viii) Tenor is 5 years, extendable for three additional years.
ix) Premature withdrawal is permissible with conditions.
x) The investment is non-tradable and non-transferable.
xi) Available through designated post offices and branches of the authorized banks throughout the country.
xii) Investment under the schemes is risk- free with easy accessibility at the nearby post office/ bank through agents also.
(b) & (c): A compliant had been received by the Government in May,2011 from a retired Defence Officer regarding non – implementation of the Senior Citizens Savings Scheme by the agency banks, due to non – receipt of relevant instructions from Reserve Bank of India on the eligibility of investment by retired Defence Personnel. RBI has, however, informed that all instructions received from the Government pertaining to the Scheme, from time to time, have been circulated to all the agency banks for implementation. These circulars are also posted on the website of RBI.
(d) & (e): The rules of Senior Citizens Savings Scheme and amendments thereto have been published in official gazette, circulated to the post offices and designated branches of the authorized banks. Instructions are also issued from time to time by the Government and Reserve Bank of India advising the agency banks for correct implementation of the scheme. Further, on receipt of the above complaint, the government had written to RBI on 20th May, 2011 for issuing necessary instructions to all agency banks operating SCSS, 2004. In turn, RBI has issued instructions to all agency banks on 9th June, 2011 for strictly adhering to existing instructions and ensuring extension of benefits of the scheme to retried army personnel.