RBI Senior Citizens Savings Scheme : Reserve Bank of India

Organisation : Reserve Bank of India
Facility :Senior Citizens Savings Scheme,2004

Home Page : http://www.rbi.org.in/
Scheme here : http://www.rbi.org.in/scripts/FAQView.aspx?Id=62

Senior Citizens Savings Scheme

salient features of the Senior Citizens Savings Scheme, 2004 :
The salient features of the Senior Citizens Savings Scheme, 2004 are given below.
** Tenure of the deposit account 5 years, which can be extended by 3 years.

Related : RBI Procedure For Operating RTGS System : www.statusin.in/1674.html

** Rate of interest 9.2 per cent per annum
** Frequency of computing interest Quarterly
** Taxability Interest is fully taxable.
** Whether TDS is applicable Yes. Tax will be deducted at source.
** Investment to be in multiples of `1000/-
** Maximum investment limit 15 lakh

** Minimum eligible age for investment 60 years (55 years for those who have retired on superannuation or under a voluntary or special voluntary scheme). The retired personnel of Defence Services (excluding Civilian Defence Employees) will be eligible to invest irrespective of the age limits subject to the fulfillment of other specified conditions
** Premature closure/withdrawal facility Permitted after one year of opening the account but with penalty.
** Transferability Not transferable
** Tradability Not tradable
** Nomination facility Nomination facility is available.
** Modes of holding Accounts can be held both in single and joint holding modes. Joint holding is allowed only with spouse.

Can a joint account be opened under the scheme with any person :
Joint account under the SCSS, 2004 can be opened only with the spouse. [Rule 3 (3)]

What should be the age of the spouse in case of a joint account :
In case of a joint account, the age of the first applicant / depositor is the only factor to decide the eligibility to invest under the scheme. There is no age bar/limit for the second applicant / joint holder (i.e. spouse). [Rule 3 (3)]

What will be the share of the joint account holder in the deposit in an account :
The whole amount of investment in an account under the scheme is attributed to the first applicant / depositor only. As such, the question of any share of the second applicant / joint account holder (i.e. spouse) in the deposit account does not arise. [Rule 3 (3)]

Whether any income tax rebate / exemption is admissible :
No income tax / wealth tax rebate is admissible under the Scheme. The prevailing Income Tax provisions shall apply. (GOI letter F. No.2/8/2004/NS-II dated October 13, 2004)

Is TDS applicable to the scheme :
Yes, TDS is applicable to the Scheme as interest payments have not been exempted from deduction of tax at source. (GOI letter F. No.2/8/2004/NS-II dated March 28, 2006)

About Us :
The Reserve Bank of India was established on April 1, 1935 in accordance with the provisions of the Reserve Bank of India Act, 1934. The Central Office of the Reserve Bank was initially established in Calcutta but was permanently moved to Mumbai in 1937.

The Central Office is where the Governor sits and where policies are formulated. Though originally privately owned, since nationalisation in 1949, the Reserve Bank is fully owned by the Government of India.