What changed
Government expanded SCSS 2004 from post offices to designated branches of public sector banks that operate the PPF Scheme, 1968. RBI issued operational guidelines including agent commission, accounting heads, and a strict launch deadline of November 1, 2004.
What it means for you
Banks must quickly train designated branches and arrange stationery to accept SCSS deposits. The scheme uses the same agency and accounting framework as PPF, so operational integration should be straightforward. Daily remittance of subscription amounts to RBI Nagpur is mandatory.
What you must do
- Identify designated branches operating PPF Scheme and equip them to accept SCSS 2004 deposits by November 1, 2004.
- Train branch staff on SCSS modalities, including agent commission at 0.5% and at-source payment system.
- Set up daily remittance of SCSS subscriptions to your Link Cell at Nagpur for credit to Government Account at RBI.
- Use prescribed accounting heads: Major Head 8001 for deposits/withdrawals, 8008 for interest and commission.
- Issue internal circulars to zonal/divisional offices and confirm receipt to RBI.
Who it affects
All public sector banks operating PPF Scheme, SBI and its associate banks, Small Savings agents under Standardised Agency System, Designated branch staff handling SCSS accounts
Which banks are eligible to offer SCSS 2004?
Only public sector banks that already operate the PPF Scheme, 1968 can offer SCSS 2004 through their designated branches.
What is the commission for agents under SCSS?
Small Savings agents under the Standardised Agency System are eligible for a commission of 0.5% of the deposit, paid at source similar to PPF agent commissions.
What is the deadline for banks to start SCSS operations?
Government wants the scheme operational through designated PSB branches at the earliest but not later than November 1, 2004.