What changed
The Government of India amended the Senior Citizens Savings Scheme, 2004, removing the proviso to sub-rule (2) of Rule 3 that prohibited opening more than one account in the same deposit office during a calendar month. Additionally, the government allowed regularization of multiple accounts opened in the same month due to ignorance, by merging them into the first account, with no interest for the intervening period.
What it means for you
Banks can now accept multiple SCSS accounts from the same depositor at the same branch within a calendar month, as long as total deposits across all accounts do not exceed the scheme's maximum limit. For accounts opened irregularly due to ignorance, banks can merge them into the first account, but the merged amount will not earn interest for the period between the first and subsequent account openings.
What you must do
- Update internal guidelines to allow multiple SCSS accounts in the same deposit office within a calendar month, subject to overall deposit limits.
- Train branch staff on the new rule and the regularization process for accounts opened due to ignorance.
- Ensure that when merging irregular accounts, no interest is paid for the intervening period between the first and subsequent account openings.
- Communicate this circular to all designated branches handling SCSS accounts.
Who it affects
Banks authorized to operate Senior Citizens Savings Scheme accounts, Depositors under the Senior Citizens Savings Scheme, 2004, Branch managers and staff handling SCSS accounts
Can a depositor now open multiple SCSS accounts in the same branch within one month?
Yes, the earlier restriction has been removed. A depositor can open multiple accounts in the same deposit office during a calendar month, provided the total deposits across all accounts do not exceed the scheme's maximum limit.
What happens if a depositor opened multiple accounts in the same month due to ignorance before this change?
Such accounts can be regularized by merging them into the first account. However, the merged amount will not earn any interest for the period from the opening of the first account to the date of opening of the second or subsequent irregular account.