SB ORDER NO. 15 /2007
No.79-8/2004-FS (Vol-V)
Government of India
Ministry of Communications & IT
Department of Posts
Dak Bhawan, Sansad Marg,
New Delhi-110001,Dated: 15.11.2007
To
All Heads of Circles/Regions
Addl. Director General, APS, New Delhi.
Subject:- Senior Citizen Saving Scheme (SCSS) 2004- Payment of Interest in cases of Premature closure of account.
Sir / Madam,
The undersigned is directed to say that Min of Finance, in a clarification given to this office vide its letter No. F.15/8/2005-NS-II dated 25.2.2006 {further circulated vide this office letter of even number dated 2.3.2006 (SB Order No.3/2006)} had clarified that the interest in such cases would be payable up to the end of the month preceding the month in which the account is pre-maturely closed. However vide its letter No. F.15/8/2005-NS-II dated 11.5.2006 addressed to RBI, MOF had clarified that in cases of pre-mature closure of SCSS accounts (other than cases of death of depositor), the interest will be payable till the date of premature closure, after deduction of penalty, as specified in Rule 9(I) (a)&(b) of SCSS Rules 2004. Some circles have pointed out that both clarifications are at variance and some depositors are demanding interest till the date of premature closure of their SCSS accounts based on the clarification issued by RBI to the Banks.
2. The matter was referred to the Min. of Finance, which now vide its letter No. F.15/8/2005-NS-II dated 1.11.2007 has clarified that its letter dated 25.2.2006 issued to this office is superseded by its letter dated 11.5.2006 issued to RBI.
3. Hence it is clarified that from 11.5.2006 onwards, in case of premature closure of SCSS account, interest is payable up to the date preceding the date of premature closure (Except in case of death of depositor) after deduction of penalty, as specified in Rule 9(I) (a)&(b) of SCSS Rules 2004. For calculating the interest of broken period of a quarter, the formula circulated vide this office letter of even number dated 16.3.2006 (SB Order No. 5/2006) may be adopted.
4. It is requested that the above clarification may kindly be brought to the notice of all the sub and head post offices for information, guidance and necessary action.
5. This issues with the approval of DDG (FS)
Yours faithfully,
(Kawal Jit Singh)
Assistant Superintendent Posts
(SB&CC)
No comments:
Post a Comment