zindgi ki dusri paari ki shaan- SCSS

Zindgi ki Dusri Paari Ki Shaan : Senior Citizen Savings Scheme

DOMAIN- Government Business (Savings Schemes)

THEME- Senior Citizen Savings Scheme 1

SUMMARY

TITLE OF THE CASE STUDY ZINDGI KI DUSRI PAARI KI SHAAN: SENIOR CITIZEN
Objectives/Learnings SAVINGS SCHEME
To sensitize operating officials specially at branch level to

Outcomes handle and resolve the queries related to Senior Citizen Savings

Scheme account in a satisfactory manner thus preventing such

queries to turn into complaints.

Target Group of participants Employees of the bank who are facing customers specially the

Branch Managers, Service managers, associates, etc.

Suggested Programmes for This case study can be administered in programmes/Webinars

administering like CP-BM (general, agri and Advance), CP- service Manager,

CP- associates, CP-Customer Service. With a view to make the
delivery of this case “PHYSITAL” in tune with present teaching

content delivery methods post covid, the author has tried to

innovate by embedding videos explaining the SCSS with the

help of some videos available online embedded into QR code

which can be scanned with smart phones of participants and

watched for better understanding of the scheme. Also, this case

study is prepared in flipbook format for a better reading

experience on mobile devices for the participants which can be

accessed by just scanning the QR code or by clicking the link

provided.

Methodology for • Participants to be divided into the groups of 5-6

administering with timelines members each (either physically or through breakout

rooms options in MS teams.)

• Based on number of participants, 4-5 groups is formed

• Case Study in PDF format/QR code format/html link

format to be distributed to each member or each group

(if administered online).

• Points and main points will be discussed by the group

participants amongst themselves after reading the case

study and reading and watching supplemental material.

• The facilitator shall endeavour to impart knowledge with

specific focus on main points raised during discussion,

clarify doubts raised by participants and summarize the

learning. Here role play can also be done wherein

facilitator can play the role of customer and ask specific

questions to assess the knowledge of the participants.

Particulars Duration

Formation of Groups 05 Minutes

Individual study 10 Minutes

Group discussions 10 Minutes

Presentation by Groups 15 Minutes

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Zindgi ki Dusri Paari Ki Shaan : Senior Citizen Savings Scheme

Summarizing Group views 05 Minutes 2
elaboration of the concept by 45 Minutes
Trainer
TOTAL DURATION

1. e-Circular no. NBG/GAD-SCSS/28/2019-20 dated

20.12.2019 based on Govt. e-Gazette Notification G.S.R.

916(E) dated 12.12.2019.
2. e-Circular No.: NBG/GAD-SCSS/8/2021 – 22 dated

07.10.2021

Supplemental 3.

Readings/Watching material

4.

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Zindgi ki Dusri Paari Ki Shaan : Senior Citizen Savings Scheme

Case Study 3

Introduction:- The Senior Citizen Savings Scheme (SCSS) is a central government sponsored
scheme introduced in the year 2004 intending to provide senior citizens with a steady and secure
source of income for their post retirement phase.

It is one of the most lucrative savings schemes in India and offers comparatively substantial returns
to its subscribers. Since it is a government backed scheme, the risk of capital loss is negligible.
The scheme is an ideal investment for those retirees who do not have any substantial income and
have no short-term financial obligations or objectives. Individuals (as per criteria described in the
scheme) can subscribe to SCSS through post office as well as public and private sector banks.

As a subject matter expert (SME) for “Ask SBI” channel, I am receiving queries on the scheme on
regular basis specially on the treatment/disposal of the fund lying in the SCSS account after the
death of account holder or first account holder if the SCSS account is joint account and whether
to charge penalty on premature closure of account due to death of depositor or penalty to be
charged if the account is being closed prematurely during extended period of three years.

To address such queries related to charge of penalty in the event of premature closure of the
SCSS account due to death of the depositor, the bank also came up with a circular on 07 October
2021 for clarification regarding charging of penalty on premature closure of SCSS account on
account of death of depositor.

In this case study, the author has tried to address the knowledge gaps about the scheme by
highlighting the salient features of the SCSS scheme with focus on disposal/settlement of funds
in the SCSS account in the event of death of primary account holder.

Background & Narration:

Housing Colony branch in the district of Ramgarh
was a Scale III officer headed branch. The branch
was opened 10 years back and within this short
period the portfolio of the branch was around 600 Cr.
Deposit and around 150 Cr advance. The branch
was mainly a deposit-oriented branch with a good
mix of CASA and TD deposit. Out of the total deposit
of Rs. 600 Cr, nearly 30 % is CASA and rest was
TD. The branch was situated in the posh colony and
professionals, government officers (both in-service
and retirees) and pensioners were its main clientele.

The customers of the branch were satisfied with the services of the branch which was also evident
from the growing business of the branch. The branch was having the staff structure of 2 officer, 4
associate and 1 sub staff. After the promotion and transfer exercise of present FY, Mr. Jaanbaz

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Zindgi ki Dusri Paari Ki Shaan : Senior Citizen Savings Scheme

the recently promoted scale III officer joined the branch as branch manager along with Ms. 4
Softspoken (scale-II) as service manager in the last week of month of June. Both the existing
officer of the branch got transferred due to promotion and long stay. Same is the case with the
associates. Out of the 4 associates two were new junior associates joined the bank three months
back. One more existing associate also got transferred two days after the joining of Mr. Jaanbaaz.
One lady associate joined the branch in his place who reported to the branch after ICT which
resulted in overhauling of the branch in terms of staff.

Both Mr. Jaanbaaz and Ms. Softspoken had earlier worked majorly at SME intensive branches

and handled SME desks in majority of their roles. Housing Colony was their first assignment in a

retail deposit intensive branch. But both the officers were very hardworking and team players. In
the first week of July, P review of the RBO was conducted and banks’ expectations from branches

were discussed including business targets, non-negotiables like customer service, ethics, RFIA,
RADAR. The stress was on doing the “First Time Right” while dealing with customers.

Mr. Jaanbaz also conducted a staff meeting the next day of P review meeting and discussed the

concerns and expectations of the bank with staff. All the staff were committed to provide best of
the customer service and grow the business of the branch ethically while focusing on “Doing the
First Time Right”.

From the next day Mr. Jaanbaaz extracted the high value customers list from branch reports and
started meeting the customers in person. During the interactions, the customers were appreciative
of the services of the branch. Out of those high value customers, most of them were senior citizens
and retired from government services. Many of them were having Senior Citizen Savings Scheme
accounts with the branch also.

Mr. Jaanbaaz had heard of the senior citizen savings scheme and had little knowledge about the
scheme since he majorly worked in SME intensive branches. During one such visit, a business
man Mr. Dhani Ram who happened to be a senior citizen asked Mr. Jaanbaaz that he wished to
open a senior citizen savings scheme account for himself and his wife and requested for Mr.
Jaanbaaz’s guidance in this regard with special regard to tax exemptions and SCSS for HUF since
Mr. Dhani Ram was a karta of an HUF in his name . Since Mr. Jaanbaaz was not fully conversant
with the scheme, he excused Mr. Dhani Ram and asked for time of a couple of days for getting
back to him.

When Mr. Jaanbaaz reached the branch in the afternoon after visiting customers with a resolve to
get details of SCSS, branch was full of chaos and noise. A young man who was accompanying
with an old lady who happened to be his mother, was shouting and screaming at Ms. Softspoken.
Mr. Jaanbaaz at once reached to the counter of Ms. Softspoken and enquired about the matter
and requested the young man and the elderly lady to accompany him to his cabin. Mr. jaanbaaz
offered both of them a seat and offered water to both of them and tried to pacify the young man.
Then he requested the young man Mr. Joshila Kumar to appraise him the matter.

Mr. Joshila Kumar said that his father and mother were having a joint Senior Citizen Savings
Scheme account with the branch with his father being the first holder. The account was opened

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Zindgi ki Dusri Paari Ki Shaan : Senior Citizen Savings Scheme

two years back. During the second wave of covid in the month of May, his father succumbed to 5
COVID and his mother had also been hospitalised for more than 1 month.

Now she wants to retain that SCSS account as joint holder. But the staff member at the branch
said that she could not. Mr. Joshila Kumar went on to say that he had read on the internet that
government has allowed the joint holder to retain the SCSS account if the first holder died. Mr.
Jaanbaaz was also not aware about the treatment of SCSS in this scenario. So Mr. Jaanbaaz
apologized with Mr. Joshila Kumar and requested for two day’s time to get back to him.

After business hours, Mr. Jaanbaaz called for a staff meeting to discuss the incidents and for
getting suggestion of the team for updating the knowledge about SCSS. In the team meeting, one
of the associates Mr. Dhyan Chand also narrated a business query by an army man who has
retired from army and had not attained the age of 60 years and wished to open a SCSS account.
Then the other associate Mr. Raichand told about the quey from a senior citizen customer Mr.
Pardeshi Lal who was an NRI two months back and now repatriated back to India and settled
permanently in India for opening an SCSS account though his deposit money is earned from
abroad.

After the team meeting, Mr. Jaanbaaz requested one of his previous Branch Manager over mobile
who is now a faculty at SBILD to guide the team
Housing colony branch about the SCSS scheme. The
faculty next day arranged an online VFS programme
for the team on SCSS scheme after business hours.

After the session, the team felt equipped to serve and
help the senior citizen to live a proud and self-
dependent life after retirement. As one associates
claimed “ Retirement k baad zindgi ki dusri paari chalu
hoti hai aur SCSS us dusri paari ko shaan se bitane
me help karti hai.
Case Problem/Questions to be pondered: -
1. What is SCSS describe salient features of the scheme?

2. Can Defence Personnel open SCSS account before attaining the age of 60?
Describe guidelines related to defence personnel for SCSS?

3. How should Mr. Jaanbaaz satisfy the business query of Mr. Dhani Ram? What are
the tax/TDS treatment and exemptions available in SCSS? Can Mr. Dahnai Ram
open SCSS for his HUF?

4. Describe guidelines regarding deceased account settlement in SCSS? How should
Mr. Jaanbaaz help and satisfy Mr. Joshila Kumar and his mother?

5. How can the branch help Mr.Pardeshi Lal ? What are the guidelines regarding
deposit of money in SCSS?
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Zindgi ki Dusri Paari Ki Shaan : Senior Citizen Savings Scheme 6

Teaching Points :-
1. What is SCSS, describe salient features of the scheme?

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2. Can Defence Personnel open SCSS account before attaining the age of 60 years?
Describe guidelines related to defence personnel for SCSS?

Yes. The retired personnel of Defence Services (excluding Civilian Defence Employees)
shall be eligible to open an SCSS account on attaining the age of 50 (FIFTY) years
subject to the fulfilment of other specified conditions mentioned above.

But The successor or legal heir of a deceased serving Defence Personnel shall not be
eligible to deposit the terminal benefits of such deceased personnel under SCSS.

3. How should Mr. Jaanbaaz satisfy the business query of Mr. Dhani Ram regarding
the tax/TDS treatment and exemptions available in SCSS? Can Mr. Dahnai Ram
open SCSS for his HUF?

As has been mentioned above that any Indian individual who has attained the age of 60
years can open or subscribe to SCSS. So Mr. Dhani Ram can invest in the scheme if has
attained the age of 60 years. If the wife of Mr. Dhani Ram has also attained the age of 60
years, she is also eligible for subscribing to SCSS.

Both the spouses can open single account or joint accounts with each other with the
maximum deposit of up to Rs.15 lakhs in each account provided both are individually
eligible to open SCSS account.

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In case of a joint account, the age of the first account holder shall be considered to 10
determine the eligibility to open the account and there shall be no age limit for the second
applicant.

If Mr. Dhani Ram is also having an HUF he can not open SCSS in the name of HUF as
this is not permissible under the scheme.

But an account opened as a Single account cannot be subsequently converted into a
joint account or vice versa later on.

SCSS account can not be opened for an HUF as HUF is a legal entity not an individual.

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4. Describe procedures regarding deceased account settlement in SCSS? How
should Mr. Jaanbaaz help and satisfy Mr. Joshila Kumar and his mother?

The Ministry of Finance has modified the Senior Citizens Savings Scheme as SCSS 2019
bringing the scheme under the ambit of Government Savings Promotion General Rules 2018.

▪ As per the scheme, where there is a death of the depositor and nomination is in force at
the time of death of the depositor of a single account, the nominee may make an application
in Form-11 to the Bank branch for payment of the eligible balance and the application shall
be accompanied by the proof of death of the depositor. The nominee will also have to
produce pass-book/deposit receipt/statement of account of the deposit. The nominee will
also submit their KYC proof. Where the nominee is an illiterate, the thumb impression on
the application shall be attested by a person known to the bank branch. If there are two or
more surviving nominees, the eligible balance shall be paid in the proportion as specified
by the depositor while making the nomination, and if no such proportion or share is
specified, then the balance is payable in equal proportion to all the surviving nominees.

▪ In case of death of the account holder before maturity or extended maturity, the interest as
applicable to this scheme will be paid till the date of the death of the account holder, to the
nominee. Post office savings interest rate is to be applied on the deposit accounts from the
date of death of the account holder till the date of final closure of the account. No penalty
is to be charged in these cases of death.

▪ In case the spouse is the sole nominee, the spouse may continue the account on the same
terms and conditions as specified under this scheme, if the spouse meets eligibility
conditions under the scheme, on the date of death of the account holder.

▪ If a depositor dies and there is no nomination in force at the time of his death and if the
eligible amount in the account does not exceed ₹5 lakhs, the authorized official of the Bank
may settle the claim to the legal heirs on submission of Application Claim Form-11
accompanied by the following documents:
a) Death Certificate
b) Pass-book or deposit receipt/statement of account in original
c) Affidavit in Form-13
d) Letter of disclaimer (wherever applicable) in Form-14
e) Bond of indemnity in Form-15

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▪ If the eligible amount in a deceased account is above ₹5 lakh, the amount shall be paid by 12
the Bank official to the claimants on submission of “Succession Certificate” issued by the
court along with the following documents namely:
a) Claim form
b) Pass-book or deposit receipt or statement of account in original
c) Death certificate of the account holder

▪ In cases of Government Savings deposit accounts, the settlement of claim can be
completed by the branch without approval from controllers. The documents specified for
settlement of SCSS deposit accounts as above should only be used and regular Bank
deceased settlement forms/booklet should not be used for settlement of SCSS deposit
claims.

In case of Mr. Joshila Kumar and his mother, Mr. Jaanbaaz can enquire about

i) the age
ii) and details like whether mother of Mr. Joshila Kumar is having SCSS account in her

name or not

and based on the findings he can allow the mother Mr. Joshila Kumar to retain the account
if
i) the lady happens to be of the age 60years and above. Because as per SCSS scheme

it is allowed that in case of a joint account or where the spouse is the sole nominee,
the spouse may continue the account if the spouse meets eligibility conditions under
the scheme on the date of death of the account holder, i.e. he/she is aged 60 or above.

ii) Or she is not having any other SCSS account in her name (sole) or joint with her late
spouse. Because as per SCSS scheme If both the spouses have opened separate
SCSS accounts and either of them dies during the currency of the account, then such
account standing in the name of the deceased holder shall not be continued and
must be closed.

5. How can the branch help Mr.Pardeshi Lal ? What are the guidelines regarding
deposit of money in SCSS?

Since Mr. Pardeshi Lal has become resident and not an NRI in present scenario, he can
open SCSS account if he had attained the age of 60. There is no criteria for resident
Indian individual regarding the type of money to be deposited in the SCSS account.

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Honor Certificates: 13

I certify that the case study is original, has not been copied from or published elsewhere.
The Case Study does not deal with any matter which is sub judice. I have made search in
repository of case study available on STU website and as on date of search no case study
pertaining to all the features of SCSS is available in it.

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