Government Schemes

Senior Citizen Saving Scheme, 2004

Any depositor may open an account at any deposit office by making an application in Form A along with the amount of deposit in multiple of one thousand rupees, along with age proof.
A depositor may operate more than one account subject to the condition that deposits in all accounts taken together shall not exceed the maximum limit of Rs.15 lakhs and provided that deposits by depositors shall be restricted to the retirement benefits or Rupees Fifteen lakhs whichever is lower.
A depositor may open the account in individual capacity or jointly with spouse.

Eligibility
  • An individual who has attained the age of 60 years and above on the date of opening of an account.
  • who has attained the age of 55 years or more but less than 60 years and who has retired on superannuation or otherwise on the date of opening an account.
  • who has retired at any time before the commencement of these rules and attained the age of 55 years or more on the date of opening of an account,
  • The retired personnel of Defence Services (excluding civilian Defence employees) irrespective of the above age limits subject to fulfillment of other specified conditions.
  • NRI : NRI's are not eligible to open an account under these rules.
  • HUF : Hindu Undivided Family is also not eligible to open an account under these rules.
Deposits and withdrawals: There shall be only one deposit in the account in multiple of one thousand rupees not exceeding Rupees Fifteen lakhs.
Withdrawals permitted after one year of opening of the account but with penalty.
Mode of Deposit

The deposit under these rules may be made :

  • By Cash, if the amount of deposit is less than Rupees One lakh.
  • By cheque or demand draft drawn in favour of the depositor and endorsed in favour of the deposit office.
Tenure of the Deposit / Renewal 5 years, which can be extended by 3 years. An application in Form B should be made within a period of one year after the date of maturity period.
Interest on Deposit 8.50%(Rate of Interest w.e.f 01-10-2016 to 31-12-2016 )
Taxability Interest is fully taxable.
Whether TDS is applicable Yes. Tax will be deducted at source
Nomination The depositor may nominate a person or more than one person, at the time of opening of the account or at any time after the opening of the account but before its closure, by an application on Form C accompanied by the passbook to the Branch.
Nomination made by the depositor can be cancelled or varied.
Transferability Not transferable
Tradability Not tradable.
Transfer from one deposit office to another Permitted.
Closure of Account/Maturity The deposit made at the time of opening of account shall be paid by the concerned deposit office after the expiry of five years from the date of opening of the account on production of the passbook accompanied by a written application (withdrawal form) Form E .
In case a depositor does not close the account on maturity and also does not extend the account, the account will be treated as matured and the depositor will be entitled to close the account at any time subject to the condition that the post maturity interest at the rate as applicable to the deposits under the Post office Savings Accounts from time to time will be payable on such matured deposits upto the end of the month preceding the month of the closure of the account.
Death of the depositor In case of death of the depositor before maturity the account shall be closed and deposit refunded on application in Form F along with interest to the nominee or legal heirs in case the nominee has also expired or nomination was not made as per rules.
If the total amount including interest payable is up to Rupees one lakh it may be paid to the legal heirs on production of (i) letter of indemnity (ii) an affidavit (iii) a letter of disclaimer on affidavit (iv) a certificate of death of the depositor on stamped paper in the form as in Annexure to Form F.
Premature closure of Account On an application in Form E the depositor may be permitted to withdraw the deposit and close the account at any time after the expiry of one year from the date of opening of the account subject to the following conditions:-
In case the account is closed after the expiry of one year but before the expiry of two years from the date of opening of the account, an amount equal to one and half percent of the deposit shall be deducted and the balance paid to the depositor.
In case the account is closed on or after the expiry of two years from the date of opening of the account, an amount equal to one percent of the deposit shall be deducted and balance paid to the depositor.
Authorised Branches All branches of the Bank except Specialised Branches are authorized to open Senior Citizens Savings Scheme (SCSS) 2004

 

Sukanya Samriddhi Account

The Scheme has been introduced during March 2015 as directed by Government of India. The facility to open accounts under the scheme is available at all SBT branches.

Objective To promote the welfare of Girl Child. The Scheme is specially designed for girls' higher education or marriage needs.
Who can open the account A natural / legal guardian on behalf of a girl child. The account can be opened in the name of a girl child from the birth of the girl child till she attains the age of 10 years.
Maximum number of accounts Upto two girl children or three in case of twin girls as second birth or the first birth itself results in three girl children.
Minimum and Maximum Amount of Deposit Min.1000 of initial deposit with multiple of one hundred rupees thereafter with annual ceiling of Rs.150000 in a financial year
Tenure of the Deposit The account shall mature on completion of 21 years from the date of opening of the account.
Provided that where the marriage of the account holder takes place before the completion of such period of 21 years, the operation of the account shall not be permitted beyond the date of her marriage and the account holder shall have to give an affidavit to the effect that she is not less than 18 years of age as on date of closing of account.
Maximum period upto which deposits can be made 14 years from the date of opening of the account.
Interest on Deposit 8.50%(w.e.f 01-10-2016 to31-12-2016)
Tax Rebate As applicable under section 80C of the IT Act, 1961
Transfer of Account The account may be transferred anywhere in India, if the girl child in whose name the account stands shifted to a place other than the city or locality where the account stands.
Premature Closure Allowed in the event of death of the depositor on production of death certificate issued by a Competent Authority or in cases of extreme compassionate grounds such as medical support in life threatening diseases to be authorized by an order by the Central Government.
Irregular Payment/ Revival of account By payment of penalty of Rs.50 per year alongwith the minimum specified amount per year.
Mode of Deposit Cash/Cheque/ Demand Draft.
Withdrawal upto 50% of the balance lying in the account as at the end of previous financial year for the purpose of higher education, marriage after attaining the age of 18 years.
Authorised Branches All branches of the Bank except Specialised Branches are authorized to open Sukanya Samriddhi Account.

 

Public Provident Fund(Amendment) Scheme, 2014
Interest 8.00%  w.e.f 01.10.2016 to 31.12.2016 (subject to change as per GOI/RBI directives) to be applied annually.
  1. This Scheme may be called the Public Provident Fund (Amendment) Scheme, 2014
  2. It shall come into force on the 13th of August 2014
  3. The Public Provident Fund scheme is a statutory scheme of the Central Government framed under the provisions of the Public Provident Fund Act, 1968.
  4. The account can be opened in any branch of the State Bank of India or its Associates (except offices managed by single officer/clerk) or in any Head Post Office or any selection grade sub post office or in any of the nationalised banks.
  5. An individual can open a Public Provident Fund Account in his own name. He can also open an additional account on behalf of a minor of whom he is guardian. He can subscribe any amount in multiples of Rs. 5/- of not less than Rs.500/- and not more than Rs.1,50,000/- in a year in each of his account. A year for the purpose of the Scheme means a financial year (1st April to 31st March). The deposits in excess of Rs. 1,50,000 made  during a year will not carry any interest and will not be eligible for rebate.
  6. Those having General Provident Fund or Employees' Provident Fund Account can also open a Public Provident Fund Account.
  7. An individual can open only one account in his/her name either in Post office or in Bank. If two accounts are opened by the subscriber in his/her name by mistake, the second account will be treated as irregular and will not carry interest.
  8. The subscriptions can be deposited in lumpsum or in convenient installment of not more than 12 installments.
  9. It is not necessary to deposit subscription in every month of the year. The amount of subscription can also be varied to suit the convenience of the subscriber.
  10. The account can be transferred at the request of the subscriber from one office of SBI or its Associates to Head Post Office or vice versa.
  11. The account can be closed after completion of 15 full financial years or the expiry of 15 years from the close of the financial year in which the initial subscription was made. This is, of course, optional and the subscriber can continue the account even after the period of 15 years for any number of further blocks of 5 years by exercising an option in form 'H'.
  12. A subscriber can take a loan from the fund in case of need. The first loan can be taken in the third year of opening the account i.e., if the account is opened during the year 1997-98, the first loan can be taken during the year 1999-2000. The amount of loan will be restricted to 25% of the balance including interest for the year 1997-98 in the account as on 31.3.1998.
  13. A subscriber can make one withdrawal during any one year. The first withdrawal can be made at any time after the expiry of 5 full financial years from the end of the year in which the initial subscription was made (i.e. from the 7th year onwards). The amount of withdrawal will be limited to 50% of the balance at credit at the end of the 4th year immediately preceding the year in which the amount is withdrawn or at the end of the preceding year whichever is lower. For example, if the account is opened in 1993-94 and first withdrawal is made during 1999-2000 the amount of withdrawal will be limited to 50% of the balance as on 31.03.1996 or 31.03.1999 whichever is lower, less the amount of loan if any drawn and which remains to be re-paid. The amount of withdrawal is not repayable. The balance as on 31.03.1996 or 31.03.1999 will include interest upto year 1995-1996 or 1998-1999 as case may be.
  14. A subscriber may nominate one or more persons to receive the amount standing to his credit in the event of his death. No nomination can, however, be made in respect of an account opened on behalf of the minor. In the event of death of the subscriber, the amount standing to his credit can be repaid to his nominee or legal heir, as the case may be, even before the expiry of 15 years.
  15. Subscriptions to Public Provident Fund qualify for deduction from the taxable income of the subscriber for Income Tax purpose like contributions to Provident Fund, Life Insurance, etc.
  16. The interest credited to the fund is totally exempt from Income Tax.
  17. The amount standing to the credit of the subscriber in the fund is totally exempt from Wealth Tax.
  18. The Account Office (including office of SBI and its Associates) can condone default in payment of subscriptions in the PPF account by charging the prescribed fee along with arrears of subscriptions.
  19. The PPF account is not transferable from one person to another. In the case of death of the subscriber the nominee cannot continue the account of deceased subscriber.
  20. The PPF account cannot be opened in the joint names. Further such account cannot be opened in the name of artificial / judicial persons.
  21. The balance in the PPF account is not subject to attachment under an order or decree of court in respect of any debt or other liability (other than Income Tax / Estate   duty liability of the subscriber).
  22. If the subscriber dies and there is no nomination at the time of death, the balance in the account, if it is upto one lakh, will be paid by the Accounts Office to the legal heirs of the deceased on receipt of application in Form G supported with necessary documents without the production of succession certificate. If the balance is more than one lakh, the production of Succession certificate will be necessary.
  23. The account in which subscriptions are discontinued for any reason, will be treated as discontinued account and cannot be closed before maturity. The account will be closed only after maturity and it will continue to earn interest till it is closed after maturity. The facility of loan or withdrawal will not be allowed from such an account.   The account can be regularized by remitting a penalty of Rs.50/- per Financial Year and Rs.500/- per Financial Year (minimum remittance for a Financial Year).  The penalty amount should be credited to Government of India / Reserve Bank of India.
  24. When the account is sought to be withdrawn from the minor's account, the guardian should give the following certificate on application for withdrawal.
    " Certified that the amount sought to be withdrawn is required for the use of ……………………...... Who is alive and is still a minor."
  25.  If the account is opened in the name of the minor and the minor attains majority before the maturity of the account, the ex-minor will himself continue the account thereafter. He will submit a revised application form for opening the account to the Accounts Office. His signature on the application form will be attested by the guardian who opened the account of the minor or by a respectable person known to the Branch.
  26. The ceiling on deposits as provided for by Central Government from time to time, which is Rs.1,50,000/- in a financial year at present, is both for individual self account and account(s) opened on behalf of minor(s) of whom he is the guardian, taken together.