Senior Citizens Savings Scheme : FAQ Part 7


Senior citizen saving scheme (SCSS) is best interest paying scheme for eligible senior citizens - 60 years.

Investment in this scheme is also eligible for deduction under the income tax (IT) act section 80C. Interest in this scheme is 9.3% per year,which is quarterly compounding.

** 30. What happens if an account is opened in contravention of the SCSS Rules?

If an account has been opened in contravention of the SCSS Rules, the account shall be closed immediately &  the deposit in the account, after deduction of the interest, if any, paid on such deposit, shall be refunded to the depositor. (Rule 12)

** 31. Whether commission is payable to the agents under the Scheme?

Payment of commission on the Scheme has been discontinued with.effect from December 1, 2011 (Government of India Notification dated November 25, 2011).

** 32. Which are the banks authorized to open an account under the SCSS, 2004?

At present, 24 Nationalized banks and one private sector / bank, as per list below, are authorized to handle the SCSS, 2004.

It may be noted that only designated branches of these banks have been authorized to handle SCSS, 2004.

    State Bank of India (SBI)
    State Bank of Hyderabad
    State Bank of Bikaner and Jaipur
    State Bank of Patiala
    State Bank of Mysore
    State Bank of Travancore
    Allahabad Bank
    Andhra bank
    Bank of Baroda (B0B)
    Bank of India (BOI)
    Bank of Maharashtra
    Canara Bank
    Central Bank of India (CBI)
    Corporation Bank
    Dena Bank
    Indian Bank
    Indian Overseas Bank (IOB)
    Punjab National Bank (PNB)
    Syndicate Bank
    UCO Bank
    Union Bank of India
    United Bank of India
    Vijaya Bank
    IDBI Bank and
    ICICI Bank Ltd.
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