F.NO.2-8/2004-NS-II

GOVERNMENT OF INDIA
MINISTRY OF FINANCE

DEPARTMENT OF ECONOMIC AFFAIRS
(GUDGET DIVISION)

NORTH BLOCK, CENTRAL SECRETARIAT,
NEW DELHI - 110001, THE OCTOBER 29,2004.

OFFICE MEMORANDUM

SUBJECT :           Senior Citizens Savings Scheme, 2004 (SCSS)-clarifications regarding.

The undersigned is directed to say that this Ministry has issued certain amendments to the Senior Citizens Savings Scheme Rules, 2004 (SCSS) on 27th October, 2004. A 'Press Communiqué' was also issued to this effect on 28th October, 2004. It has been reported in certain sections of the 'Press' that the scheme has been modified to include all persons who are 55 years but less than 60 years of age, as eligible persons for the purpose of this scheme.

2. It is, however, clarified that only person retiring on superannuation or otherwise and who have attained the age of 55 years or more but less than 60 years on the date of opening of account, have been made eligible to subscribe to the scheme vide the amendment referred to above.

3. The minimum age limit of 60 years shall continue to apply in all other cases as per the specified provision.

4. It is further clarified that only Defence Personnel (excluding Civilian Defence Employees), retired on supernnuation shall be eligible to subscribe irrespective of the age limits. Personnel,  retiring otherwise than on superannuation, shall be eligible to subscribe to the scheme only after attaining the age of 55 years.

5. Copies of signed notification  effecting the  amendments have already been sent to the Department of Posts and Reserve Bank of India for their information and necessary action vide this Department 's letter of even No. dated 27th October, 2004

6. The above clarifications may kindly be brought to the notice of all concerned immediately in order to avoid any wrong interpretation / irregular investments . This may kindly be treated as most immediate.

Receipt of this OM may kindly be acknowledged by return fax.

sd/-

(P.C. SINGH)

UNDER SECRETARY TO THE GOVERNMENT OF INDIA

Tele : 2309 3035

Fax : 011-2309 2477 / 2309 2511

1. Department of Posts, [Kind attn: Smt. P. Gopinath, DDG(FS)]

    Dak Bhawan, Sansad Marg, New Delhi - 110001.

2. Reserve Bank of India (Attn: Shri Prabat Sen, CGM(DSBA),

   (CENTRAL OFFICE), Bycula, MUMBAI.

[ TO BE PUBLISHED IN THE GAZETTE OF INDIA : EXTRAORDINARY, PART II - Sec.3(i) ]

MINISTRY OF FINANCE
(Department of Economic Affairs)

NOTIFICATION

New Delhi, the 27th October, 2004

GSR.......(E) :- In exercise of the power conferred by section 15 of the Government Savings Banks Act, 1873 ( S of 1873 ), the Central Government hereby makes the following rules to amend the Senior Citizen Savings Scheme Rules, 2004, namely:-

1.   (1) These rules may be called Senior Citizen Savings Scheme (Amendment) Rules, 2004.

    (2) They shall come in to force on the date of their publication in the Official Gazette.

2.   In the Senior Citizen Savings Scheme Rules, 2004 (hereinafter referred to as the said rules), in rule 2, -

(a) in clause (d), for sub-clause (ii), the following sub-clause shall be substituted, namely :-

"(ii) who has attained the age of 55 years or more but less than 60 years, and who has retired on superannuation or otherwise on the date of opening of an account under these rules, subject to the condition that the account is opened by such individual within one month of the date of receipt of the retirement benefits and proof of date of disbursal of such retirement benefit(s) along with a certificate from the employer indicating the fact of retirement on superannuation or otherwise, retirement benefits, employment held and period of such employment with the employer is attached  with the application form in

FORM-A:

Provided that the persons who have retired at any time before the commencement of these rules and attained the age of 55 years or more on the date of opening of the account under these rules, shall also be eligible to subscribe under the scheme within a period of one month of the date of this notification, subject to the fulfillment of other specified conditions:

Provided further that the retired personnel of Defence Services (excluding Civilian Defence Employees) shall be eligible to subscribe under the scheme irrespective of the above age limit subject to the fulfillment of other specified conditions.";

(b)  for clause (e), the following shall be substituted, namely:-

'(e) "Deposit Office" means-

(i) any post office in India doing savings bank work and authorised  by Director General Posts, to open an account under these rules, or

(ii) an office or branch of a banking company, or any other company or institution, authorised by the Central Government to receive subscription under the Public Provident Fund Scheme.'.

3.  In rule 4 of the said rules, in sub-rule (1), the following shall be inserted at the end, namely:-

'Provided that deposits by depositors under sub-rule (ii) of rule 2, shall be restricted to the retirement benefits received by them or rupees fifteen lakh, whichever is lower.

Explanation:- For the purpose of this sub-rule, "retirement benefits" means any payment due to the depositor on account of retirement whether  on superannuation or otherwise and includes Provident Fund dues, retirement/superannuation gratuity, commuted value of pension, cash equivalent of leave, savings element of Group Savings linked Insurance Scheme payable by employer to the employee on retirement, retirement-cum-withdrawal benefit under the Employees' Family Pension Scheme and ex-gratia payments under a voluntary retirement or a special voluntary retirement scheme.'.

4.  In  rule 7  of the said rules, in sub-rule (4), 'for the words "limit of deposits" the words "limit of balance"           

     said be substituted.

5. In  rule 8 of  the  said  rules,  in  sub-rule (3),  after  the  second proviso,  the  following  proviso  shall be

    inserted, namely:-

"Provided also that where both the spouses have opened separate accounts under the scheme, and either of the spouses dies during the currency of the account(s) under the scheme, the account(s) standing in the name of the deceased depositor/spouse shall not be continued in accordance with the first proviso and such accounts shall be closed.".

6. In Form-A of the said rules:-

(i) in paragraph 2, in sub-paragraph (iv), for the word, brackets and figure "sub-rule (8)", the words, brackets and figure "sub-rule (7)" shall be substituted;

(ii)  for the person/persons mentioned below paragraph 3, the following shall be substituted, namely:-

"TABLE"

7.  In Form-C  of  the said  rules, for the  person/persons  mentioned below paragraph 1, the following shall

     be substituted, namely:-

"TABLE"

8.   In Form-E   of  the  said   rules,   under  the  heading RECEIPT, below   the words  "Signature/Thumb

     impression of the Depositor", the following shall be inserted, namely:-

"Signature of in-charge of Deposit Office

(Along with name and designation stamp)".

9.   In  Form-F  of   the    said     rules,    under     the   heading   RECEIPT  TO  BE  SIGNED  BY  THE

     CHAIRMAN(S),  below  the words "Signature/Thumb  impression  of the Claimant(s)",  the following

     shall be inserted, namely:-

"Signature of in-charge of Deposit Office

(Along with name and designation stamp)".

{F.No. 2-8/2004-NS-II]

Sd/-

(P.C. SINGH)

Under Secretary to Government of India

NOTE :- The Senior Citizens Savings Scheme Rules, 2004 were published in the Gazette of India (Extraordinary) vide notification number GSR 490(E) dated the 2nd August, 2004.

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