Senior Citizen Savings Scheme (SCSS) Death Claim Closure Within Lockup Period or PMC in DOP Finacle

PMC Normal Case:

(1) The account holder may withdraw the deposit and close the account at any time on an application in Form-2 subject to the following conditions, namely:-

(i) In case, the account is closed before one year after the date of opening of account, interest paid on the deposit in the account shall be recovered from the deposit and the balance shall be paid to the account holder.

SCSS Death Claim Premature Closure Dealt in DOP Finacle

When a SCSS account customer is expired, we may get the copy of death certificate after verification with Original Certificate we have to follow below procedure.

Modification at CIF Level:-

1. Invoke the menu CMRC then select the function as "Modify" and enter the CIF id of the deceased customer as shown

• Then click on Go then the system will shown the screen as shown then select the customer status as "Deceased" and enter the date of death ________ as shown

2. Then click on submit then the system will show the message modified successfully and verify the same in the supervisor.

Modification of Interest rate at supervisor level:-

1. The menu HINTTM which is a supervisor menu which is used to change the rate of interest for any account. Generally HINTTM in practical scenario is used in two cases
2. For transfer of PPF account from DOP to Bank in this scenario we have to make the interest rate as Zero for current year and then transfer to Bank.
3. When we are closing the SCSS death closure we have to make the rate of interest as simple SB interest rate from the date of death.
4. Invoke the menu HINTTM select the function as "modify", Entity type as "Accounts" and Entity id as "customer account number"  as shown
5. Then click on Go then the system will ask to enter the following 
6. Then enter the column interest table code as "SBRATE"
7. Enter the start date as "date of death of the customer"
8. Then click on Submit and verify the same in another supervisor.
   

Closure of SCSS account:- 

1. In the next invoke the SCSS closure menu HCAACTD then select the function as "Z-close" and enter the account id of the customer then the system will automatically fills the closure value date as shown
2. Then visit the closure details and closure exceptional details.
3. Select the reason code as "DTCLM" for death closure as shown
4. Then click on submit and verify the same in the supervisor.

Note that in Finacle each reason code is coded as per the norms given by the DOP to Infosys so select the reason with utmost care for correct calculation of interest for any closure.

Features of Post Office Senior Citizens Savings Scheme (SCSS)

Senior Citizens Savings Scheme (SCSS)

Post Office Senior Citizens Savings Scheme has been notified with effect from August 2, 2004. The Scheme offers a new avenue of investment and return for Senior Citizen. The investment under this scheme qualify for the benefit of Section 80C of the Income Tax Act, 1961 from 1.4.2007.

Salient features of POSCS (Post Office Senior Citizens Savings) Scheme

Eligibility

• Any citizen, who has attained age of 60 years or above on the date of opening of the account.
• Who has attained the age 55 years or more but less than 60 years and has retired under a Voluntary Retirement Scheme or a Special Voluntary Retirement Scheme on the date of opening of the account within one month from the date of retirement.
• No age limit for the retired personnel of Defence services provided they fulfill other specified conditions.
• A depositor may open the account in his individual capacity or jointly with spouse.
• The accounts may be opened singly or jointly with spouse.
• More than one account can be opened provided the total amount deposit does not exceed the prescribed limit.
• Eligible applicants can open account by submitting application on Form A.
• Non-residents and HUFs are ineligible to open the account under the scheme.
• In case of cheque, the date of realiz​​ation of cheque in Govt. account shall be date of opening of account.

Minimum amount

Rs. 1,000/-

Maximum amount

Rs. 15,00,000/- (Rs. fifteen lakhs). In case of retiring employees the amount cannot exceed the amount of retirement benefits.

Maturity period

Five years

The depositor may extend the account for a further period of 3 years by submitting application on Form B

Nomination facility

Available

A depositor may change nomination by submitting application on Form C.

Interest

Period	Interest Rate
Upto 31.03.2012	9.00% per annum
01.04.2012 to 31.03.2013	9.30% per annum
01.04.2013 to 31.03.2014	9.20% per annum
01.04.2015 to 31.03.2016	9.30% per annum
01.04.2016 to 30.09.2016	8.60% per annum
01.10.2016 onwards	8.50% per annum

Interest is payable quarterly on 31st March, 30th June, 30th September and 31st December.

If the interest payable every quarter is not claimed by a depositor, such interest do not earn additional interest.

Mode of payment of interest

• In case of SCSS accounts, quarterly interest shall be payable on 1st working day of April, July, October and January. It will be applicable at all CBS Post Offices.

Premature withdrawal

In case the account is closed after expiry of one year but before expiry of two years from the date of opening of the account, an amount equal to 1.5% of the deposit shall be deducted and the balance paid to the depositor.

Premature closure is allowed after one year on deduction of 1.5% interest & after 2 years on deduction of 1% interest.

Application for premature closure of the account may be submitted on Form E.

No deduction shall be made in case of premature closure of an account at any time due to death of a depositor. Application for premature closure by spouse (Joint Holder)/nominee(s)/legal heirs of the account may be submitted on Form F.

Tax benefits

Investment under this scheme qualifies for the benefit of Section 80C of the Income Tax Act, 1961 from 1.4.2007.

Interest Taxability

Taxable

• Other features

• The Account can be transferred from one post office to another