(a) whether there is no provision of loan or overdraft against the deposit under the Senior Citizens Saving Scheme;
(b) if so, the details thereof alongwith reasons therefor; and
(c) the corrective measures taken by the Government in this regard?
(a) whether there is no provision of loan or overdraft against the deposit under the Senior Citizens Saving Scheme;
(b) if so, the details thereof alongwith reasons therefor; and
(c) the corrective measures taken by the Government in this regard?
MINISTER OF STATE IN THE MINISTRY OF FINANCE (SHRI NAMO NARAIN MEENA)
(a) to (c): Yes, Madam. The Senior Citizens Savings Scheme, 2004 (SCSS), was designed
to meet the need of a regular flow of income for the senior citizens and retired persons
with security of investment, liquidity of funds and operation convenience. Keeping in view
of the above, higher rate of interest at 9 percent per annum is offered to all senior citizens
under this scheme. Persons wh`o are 60 years of age and above can make a deposit under the
scheme. Those retired persons who are 55 years of age and above but below 60 years are also
eligible to invest their retirement benefits subject to maximum deposit limit of Rs. 15 lakh
under the scheme.
Facility of loan or overdraft against the deposit would necessitate pledging of the
deposit under this scheme. As a consequence, the subscriber of a pledged account will not be
able to withdraw the interest amount periodically defeating the very purpose of the scheme.