In a significant move aimed at providing enhanced flexibility and benefits to senior citizens, the Department of Economic Affairs (DEA) under the Ministry of Finance has notified seven key changes in the Senior Citizens Savings Scheme (SCSS). This government-sponsored savings instrument, designed for individuals aged 60 years or employees aged 55 years or more but less than 60 years, has undergone substantial modifications, as outlined below:
Individuals aged above 55 but below 60 now have a generous 3-month window to invest in SCSS following receipt of retirement benefits. This is a departure from the previous requirement of investing within 1 month.
Spouses of government employees are now permitted to invest the financial assistance amount in the SCSS, broadening the scope of eligible investors.
The definition of retirement benefits has been explicitly outlined to include various payments received due to retirement or superannuation. This encompasses provident fund dues, gratuities, commuted pension values, leave encashment, and other retirement-related benefits.
Norms on premature withdrawals have been relaxed. A 1% deduction of the deposit will be applied if the account is closed before the completion of 1 year of investment. This marks a departure from the previous practice of recovering interest paid on premature withdrawals.
Account holders can now extend their SCSS accounts for multiple blocks of 3 years each. Prior to this change, extension was allowed only once. Each extension requires a separate application.
When extending the SCSS account on maturity, the deposit will earn the interest rate applicable on the date of maturity or the date of the extended maturity, providing more favorable terms for account holders.
The maximum deposit limit for SCSS has been raised to Rs 30 lakh from Rs 15 lakh, effective from April 1, 2023. This aligns with the announcement made in Budget 2023.
Important takeaways for all competitive exams:
Find More News Related to Schemes & Committees
World AIDS Vaccine Day, also known as HIV Vaccine Awareness Day, is observed annually on…
The Indian government has announced plans for public sector companies like Coal India, NMDC, and…
In April, India's merchandise exports saw a modest 1% increase, reaching $34.99 billion, driven by…
The Open Network for Digital Commerce (ONDC), a digital infrastructure initiative launched in 2021, has…
In response to rising credit demand and falling liquidity, State Bank of India (SBI) has…
The Indian Army is poised to elevate its air defense capabilities with the impending delivery…