Senior Citizens’ Savings Scheme: No Premature Closure of Account on Death, Clarifies Finance Ministry
The ministry said that in cases where the SCSS account holder(s) passes away and the account is being closed on request of the nominee or legal heir, the rate of interest as applicable on SCSS scheme shall be paid till the date of demise of the account holder.
New Delhi, September 29: The Finance Ministry on Thursday clarified that premature closure of an account under the Senior Citizens' Savings Scheme (SCSS) does not get triggered due to the death of account holder, but is applicable only when the account holder requests for the account's closure before the maturity period.
In such cases of premature closure of an account, a penalty is levied as per rule 6 of the SCSS, the ministry said in a statement. The clarification came as it has been noticed in some cases that on the death of the account holder, operating agencies are closing the SCSS account by treating it as premature closure. Govt Hikes Interest Rates on Some Small Savings Schemes by Up to 30 Bps in Q3
The ministry said that in cases where the SCSS account holder(s) passes away and the account is being closed on request of the nominee or legal heir, the rate of interest as applicable on SCSS scheme shall be paid till the date of demise of the account holder. Finance Minister Nirmala Sitharaman Criticises States Seeking More Funds, Says ‘You Me’ Culture Won’t Work
Thereafter, the interest rate applicable on post office savings accounts shall be paid from the date of demise of the account holder till the date of final closure of the account, it added.
(The above story first appeared on LatestLY on Sep 29, 2022 06:41 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).