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Following is revised `Senior Citizen Savings Scheme'- Effective 2nd August 2004
The scheme was initially structured for citizens of 60 years of age and above. Now, citizens who have retired under a voluntary or special voluntary retirement scheme and have attained the age of 55 years are also eligible to invest. Non-resident Indians and Hindu Undivided Families are not eligible to invest in the scheme.
The deposits for the scheme can be done in multiples of Rs 1,000 subject to a maximum of Rs 15 lakh. It would carry an interest of 9 per cent per annum (taxable). The maturity period of the deposit would be five years, extendable by another three years. The Scheme provides for premature withdrawal after a period of one year. However, this would be subject to certain deductions.
The investments in the scheme will be non-tradable and non-transferable. However, nomination facility will be available.
23 banks have been designated by the Reserve Bank of India (RBI) to distribute the taxable bondsfrom November 2004. Earlier the scheme was proposed to be distributed through the postal department.
While the National Small Savings organisation will be the nodal authority for the scheme, RBI will be responsible for managing banks involved in the distribution.
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