All Public Sector banks and ICICI Bank, Axis Bank and HDFC Bank Ltd. authorized to receive subscriptions under the Senior Citizen Savings Scheme Rules, 2004.

Dated 10th October, 2017 | Copy of | Finance Notification Sl.128 | 

In pursuance of sub-clause (ii) of clause (e) of rule 2 of the Senior Citizen Savings Scheme Rules, 2004, the Central Government hereby authorises all public sector banks and ICICI Bank, Axis Bank and HDFC Bank Ltd. to receive subscriptions under the Senior Citizen Savings Scheme Rules, 2004 (herein referred to as the said Scheme), with effect from the date of the notification in the Official Gazette.

2. The authorisation under this notification is subject to the following conditions, namely:-

(i) there is dedicated software in the bank for operation and accounting of small savings schemes with specific functionality for each scheme;

(ii) the bank may manage the deposit of subscription in accordance with the said Scheme, through on-line operations in all branches that are on Core Banking Solution, subject to adequate security checks and the branches that are not on Core Banking Solution may operate deposit of subscription under the said Scheme, manually;

(iii) all remittances shall be credited to the Government Account at the Reserve Bank of India, Central Accounts Section, Nagpur within one day in case of Core Banking Solution branches and three days in case of non-Core Banking Solution branches;

(iv) in case of delay in remittances beyond the period in clause (iii), the Bank shall pay a penalty equal to the rate of interest payable to the depositor plus 0.5% in case of delays upto thirty days, and 1% in case of delays beyond thirty days;

(v) the Bank shall, subject to the reasonable justification furnished to the Central Government, declare in advance the list of branches that shall not accept deposits of subscription under the said Scheme;

(vi) in case of any pecuniary liability arising from the failure of the Bank to perform in accordance with the provisions of the said Scheme, the Bank shall be liable to bear the liability, in addition to being liable to be de-authorised to operate small savings schemes;

(vii) in case of any amount including penalties, becoming due from any Bank under these terms and conditions, the Central Government shall realize the amount from the Bank;

(viii) every Bank shall submit periodic reports to the Central Government concerning the deposits of subscription and withdrawals etc. under the said Scheme.
Explanation.- For the purpose of this notification, the expression “public sector bank” shall have the same meaning as assigned to it in the explanation to clause (23D) of section 10 of the Income-tax Act, 1961 (43 of 1961).

Sd/-
(Prashant Goyal)
Jt. Secy.

F.No.7/10/2014-NS
Issued by:
Ministry of Finance
(Department of Economic Affairs)
New Delhi

Note : The Senior Citizens Savings Scheme Rules, 2004 were published in the Gazette of India, Extraordinary, vide notification number G.S.R.490(E), dated the 2nd August, 2004 and subsequently amended vide numbers G.S.R.706(E), dated the 27th October, 2004, GSR 176(E), dated the 23rd March, 2006, GSR 390(E), dated the 24th May 2007, G.S.R.639(E), dated the 28th July, 2010, G.S.R.770(E), dated the 19th October, 2011, G.S.R.321(E), dated the 25th April, 2012, G.S.R.402(E), dated the 25th June 2013, G.S.R.224(E), dated the 13th March 2014, G.S.R.492(E), dated the 11th July, 2014, G.S.R.592(E) dated the 27th July, 2015, G.S.R.351(E), dated the 29th March, 2016, G.S.R.938(E), dated the 30th September, 2016 and G.S.R.386(E), dated the 31st March, 2017.