Focus: GS II: Government Policies and Interventions
Why in News?
The collections under the revamped Senior Citizen Savings Scheme (SCSS) jumped 176% on year to Rs 55,000 crore in the first quarter of the current financial year.
About Senior Citizen Savings Scheme (SCSS):
- The main aim of the SCSS is to provide senior citizens in India a regular income after they attain the age of 60 years old. The scheme offers eligible individuals the opportunity to make a lump sum deposit with a minimum of Rs. 1,000 and a maximum of Rs. 15 Lakh or the amount received on retirement, whichever is lower.
Eligibility:
- Indian citizens above the age of 60 years
- Retirees in the age bracket of 55-60 years who have opted for Voluntary Retirement Scheme (VRS) or Superannuation
- Retired defence personnel above 50 years and below 60 years of age
Deposit Limits:
- Minimum Deposit – Rs. 1,000 (and in multiples thereof)
- Maximum Deposit – Rs. 15 Lakh or the amount received on retirement, whichever is lower (Increased to Rs 30 lakh in Budget 2023)
- Individuals are allowed to operate more than one account by themselves or open a joint account with their spouse
Maturity & Interest Payment:
- Maturity period of five years
- Depositor can extend the maturity period for another three years
- Interest amount paid to the account holders quarterly
Other Details:
- Premature withdrawal is allowed after one year of opening the account
- Deposits in SCSS qualify for deduction u/s 80-C of Income Tax Act.
