When the first holder in the SCSS (Senior Citizen Savings Scheme) account dies, the second holder (spouse) is allowed to continue the account even when he/she does not meet the age criteria of 60 years as required under the rules. Similarly, when the spouse is the sole nominee, he/she is allowed to continue the account even when he/she does not meet the age criteria of 60 years as required under the rules. Also, in case of surviving nominee is a spouse, he or she can continue SCSS A/c even if a separate SCSS A/c is opened in her/his name.
A claim application for the SCSS from a legal heir who prefers a claim without the production of legal evidence may be accepted at the discretion of sanctioning authority up to the limit fixed by Min. These claims can be made after the completion of 6 months from the time of death of the depositor. There are, however, monetary limits on the claims based on the authority, details of which you can find in the SB order 36/2020 dated 06.11.2020. The revised sanction limits for without production of legal evidence applicable to the discretion of various authorities are as under.
- Sub –Postmasters of Lower selection grade post offices limit up to Rs.50000/,
- Sub-Post Masters of Higher selection grade (all non-gazetted ) SOs HPOs- limit up to Rs.100000/-, and
- Higher authorities like Senior Post Master, Chief Post Master etc for the amount up to Rs. 5,00,000/-).
The claim application form in case of without production of evidence is the same form used for nomination is registered to be submitted along with (i) a Letter of indemnity signed by Claimant, sureties, Witnesses executed before Notary Public, (ii) an Affidavit signed by all legal heirs including claimant and executed before Notary Public/ Oath Commissioner, (iii) a Letter of disclaimer on Affidavit signed by All legal heirs excluding claimant and executed before Notary Public/ Oath Commissioner
The claimant/s for the amount above Rs. 5,00,000/- requires to obtain a succession certificate from a competent court of law or produce the probate of a will or letters of Administration of Estate of the deceased.
In this case claim settlements without legal evidences relating to Savings Bank Accounts and Savings Certificates of deceased depositor shall be treated as separate and the prescribed limit shall be applied separately for each account or purchase application. .
Where the SCSS Claim amount is above Rs.500000/- without the support of nomination:
If the claim amount of the SCSS account exceeds the prescribed limit which is now Rs. 5,00,000/-, the claimant/s requires to obtain a succession certificate from a competent court of law or produce the probate of a will or Letters of Administration of Estate of the deceased. An application (application form available at the post office) to the Postmaster of the office of registration, supported by succession certificate from a competent court of law or produce the probate of a will or Letters of Administration of Estate of the deceased along with death certificate/proof of death of the holder and along with succession certificate/of deceased nominee or nominees along with original certificates of NSC and Identity proof of the claimant/s (Any of the following: PAN card/Voter card/Driving License/Passport/ Aadhar card/Nregra Job card).
Interest payment: Up to date of death, interest rate will be as applicable to regular SCSS account and after that SB interest is applicable
Hi Team,
As per mentioned in this article in case of death of first account holder, second account holder i.e. spouse can continue SCSS account on same terms even if spouse is not 60 year old.
But is refusing it, they are saying as my mother is not 60 year old, so as per SCSS 2019 she is not eligible to continue this account hence we need to get it closed.
Please guide me either bank is valid or your this article is valid.
i mean bank is refusing to this guidelines mentioned here
Clarification by DG Posts:- The Joint holder (spouse) or the sole nominee (spouse) shall be allowed to continue in the event of death of the first holder even when the spouse does not meet the age criteria of 60 years or required under the rules. (DG Posts Letter No. 79-8/2004-FS dated 23.3.2006)
For confirmation from the Government authority click: http://www.nsiindia.gov.in/InternalPage.aspx?Id_Pk=134
I contacted nsiindia for the above mentioned clarification and they are highlighting it does not hold good post June 2014 amendment on SCSS 2004 scheme.
Thanks for your query. In the Senior Citizens Savings Scheme (Amendment) Rules, 2014, after sub-rule 3 of rule 8, the following lines are added. Quote: “Provided that in the case of a joint account, or where the spouse is the sole nominee, the spouse may continue the account on the same terms and conditions as specified under these rules”.
“Provided further that in case the spouse does not continue the joint account, the account shall be closed on an application in Form-F and the deposit refunded along with interest as above”.
unquote: I don’t find any mistake in the post as it does not contradict any of the above clauses of the 2014 amendment. Please verify the Government of India notification G.S.R 224(E) dated March 13 2014 to get yourself confirmed about the correctness in this regard. Also, let me know if you find any mistakes in the post. Regards.
I do not see any mistake in the post or the clarification on nsiindia website, but the nsiindia response on email highlights GSR392E dates 14th June 2014 rescinds earlier clarification dated 23.03.2006 and is clarification dated 23.03.2006 is available on website for just general informational purposes. Please advise what next steps could be takenm in this case.
You can complain to the Directorate of Public Grievances. You need to give the details of grievances with copies of supporting document. DPG will directly seek comments from the concerned department or organisation after assessing what aspect of your complaint fall within its purview and the gravity of the complaint. Alternatively, you can directly complain to SEBI.
The Senior Citizens Savings Scheme Rules, 2004 were published in the Gazette of India (Extraordinary) vide notification number G.S.R.490 (E), dated the 2nd August 2004 and subsequently amended vide G.S.R.706 (E), dated the 27th October 2004, G.S.R.176 (E), dated the 23rd March, 2006, G.S.R.390(E), dated the 24th May, 2007, G.S.R.639(E), dated the 28th July, 2010, G.S.R.770(E), dated the 19th October, 2011, G.S.R.321(E) dated the 25th April, 2012, G.S.R.402(E), dated the 25th June 2013 and G.S.R.224(E) dated the 13th March 2014.
After my husband’s death I have opened a joint A/c with my 1st daughter. Now if I open SCSS A/c (senior citizen scheme) in post office with 6 lakhs, in seperate two books of 3 lakhs each. For 1st book nominee (3 lakhs) will be my first daughter and for 2nd book (3 lakhs) nominee will be my second daughter. In this case after my death any other daughter (as I have 4 daughters) can claim this money or only nominees (1st and 2nd daughter) will get this money. Kindly confirm.
Nomine is only a trustee, therefore other legal heirs can claim their share. Prepare a will (no stamp paper is required)mentioning to whom all your assets are to be distributed and in what proportion. Read my following post about how to prepare a will.
https://bankingschool.co.in/legal-and-regulatory-aspects-of-banking/how-to-write-a-will/