Senior Citizens Savings Scheme | Calculation of 30days after retirement in case of VRS | Limits

This scheme has been introduced w.e.f. 2.8.2004. The scheme is operated as per the provisions under Government Savings Promotion General Rules- 2018 and Senior Citizen Savings Scheme Rules-2019.

110. Salient Features

(1) Eligibility to open Account 

(i) The account may be opened by individual who has attained the age of 60 years on the date of opening of an account, or

(ii) The account under the scheme may be opened by an individual 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 benefit, employment held and period of such employment with the employer is attached with the application form.

Provided further that the retired personnel of Defence Services (excluding Civilian Defence Employees) shall be eligible to open account under the scheme if he/she attained age of 50 years subject to the fulfilment of other above specified conditions. 

Note: Calculation of 30 days after retirement: A question has been raised as to how to calculate the 30 days period after the receipt of retirement benefits when benefits are received in piece meal on different dates. It is clarified that the facility of opening multiple accounts is already available under the scheme. The retired person can open more than one account on receipt of the retirement benefits in piece meal provided the relevant account is opened within one month of the receipt of the prescribed retirement benefit.

(2). The account may be opened in individual capacity or jointly with spouse (Spouse means Husband or Wife). It is not necessary for the spouse to be of 60 years or 55 years, as  the case may be. There is no age bar limit for the 2nd applicant/Joint holder (spouse). In case of joint account, the account may be either Joint A type or Joint B type. This may be indicated on the top of the application form.

(3) If a depositor subsequently becomes NRI during the currency of the account, the account may be continued till its maturity on a non-repatriation basis. Such account shall not be extended beyond the maturity period, no interest shall be paid after maturity in such cases

(4) Limits: The individual may open one or more accounts with a minimum deposit of Rs. 1000/- and in the multiple of Rs. 1000/-, subject to a maximum of Rs. 15 lakhs.In case the account is opened under the category of VRS employees (below 60 years of age), the deposits made by such depositors shall be restricted to the retirement benefits received by them or rupees fifteen lakh, whichever is lower.

Explanation: For the purposes under this scheme, “retirement benefits” means any payment due to the account holder on account of retirement on superannuation or otherwise and includes Provident Fund dues, retirement or superannuation gratuity, commuted value of pension, cash equivalent of leave, savings element of Group Savings Linked Insurance Scheme payable by the employer on retirement, retirement-cum withdrawal benefit under the Employees’ Family Pension Scheme and ex-gratia payments under a voluntary or a special voluntary retirement scheme.

Revised POSB Manual Chapter 9 Rule No.110 Eligibility and Limits for Opening of a SCSS account.