What changed
The Government of India amended the Senior Citizens Savings Scheme Rules, 2004, specifically regarding the transfer of accounts from one deposit office to another. A transfer fee payable by the depositor was introduced via Notification No. GSR...(E) dated March 23, 2006.
What it means for you
Banks designated under SCSS must now charge depositors a fee when they request a transfer of their account to another deposit office. This standardizes the process and ensures cost recovery for administrative work involved in transfers.
What you must do
- Advise all designated branches to note the amended SCSS rules on account transfers.
- Implement the prescribed transfer fee for depositors moving accounts between deposit offices.
- Ensure branches have a copy of the Government Notification No. GSR...(E) dated March 23, 2006.
- Acknowledge receipt of this RBI circular to confirm compliance.
Who it affects
State Bank of India and its associate banks, Allahabad Bank, Bank of Baroda, Bank of India, Bank of Maharashtra, Canara Bank, Central Bank of India, Corporation Bank, Dena Bank, Indian Bank, Indian Overseas Bank, Punjab National Bank, Syndicate Bank, UCO Bank, Union Bank of India, United Bank of India, ICICI Bank Ltd., Designated branches handling SCSS accounts, Senior Citizens Savings Scheme depositors
What is the new transfer fee for SCSS accounts?
The exact fee amount is not specified in this circular; banks must refer to the Government Notification No. GSR...(E) dated March 23, 2006 for the prescribed charges.
When did this amendment take effect?
The amendment was notified on March 23, 2006, and RBI communicated it to banks on April 12, 2006, for immediate implementation.
Which banks are required to implement this change?
All banks listed in the circular, including SBI, its associates, major public sector banks, and ICICI Bank Ltd., must update their designated branches.