Quick Summary
In the operation of Senior Citizens Savings Scheme (SCSS), it has been noticed in few cases on the death of the account holder, operating agencies are closing the SCSS account by treating it as premature closure. In this context, attention is drawn to Rule 7(2) of SCSS, and the following is clari
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FAQ :
Upon the death of an SCSS account holder, the account should not be treated as a premature closure. Interest is paid at the SCSS rate until the date of demise, and then at the Post Office Savings Account rate until final closure.
From the date of the account holder's demise until the final closure of the account, the interest rate applicable to the Post Office Savings Account will be paid.
No, the premature closure clause does not apply when an SCSS account holder passes away. This clause is only for when the account holder requests closure before maturity.
Penalties for premature closure are levied only when the SCSS account holder themselves requests to close their account before its maturity period, as per rule 6 of the SCSS.
The nominee or legal heir can request the closure of the SCSS account after the account holder's death.
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