Govt. Notifies Key Changes To Senior Citizens Savings Scheme 2023
The Central Government has introduced amendments to the Senior Citizens Savings Scheme, as outlined in the Senior Citizen's Savings (Fourth Amendment) Scheme, 2023. "In exercise of the powers conferred by section 3A of the Government Savings Promotion Act, 1873 (5 of 1873), the Central Government hereby makes the following Scheme to further amend the Senior Citizens Savings Scheme, 2019," said an official release.
The key modifications are detailed below:
Individuals aged 55 years or more but less than 60 years, who have retired, can open an account within three months of receiving retirement benefits. Proof of disbursal, retirement details and a certificate from the employer are required. Retired Defense Services personnel (excluding Civilian Defense employees) can open accounts at fifty years, with specified conditions.
The spouse of a government employee, who is fifty years or older and has died in service, may open an account, subject to specified conditions.
"Retirement benefits" encompass various payments due to the account holder upon retirement, including Provident Fund dues, gratuity, commuted pension value, leave encashment and other benefits. This definition extends to beneficiaries if the employee died in service.
Extended accounts will earn interest at the applicable rate on the maturity or extended maturity date.
Early closure of an extended account incurs a one percent deduction, with the remaining balance paid to the account holder.
Deposits made at account opening are payable after five years or after each block period of three years if the account is extended, with a new account possible after closure, adhering to the maximum deposit limit.
In joint accounts or with the spouse as the sole nominee, the spouse can continue the account under the same terms if eligible upon the account holder's death.
Account extension for three years is possible by applying within one year of maturity, with the extension deemed effective from the maturity date.
The extension is considered from the maturity date, regardless of the application date.
In a revision to sub-paragraph (3), "only once" is substituted with "in block period of three years."
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