Senior Citizens Savings Scheme
I wrote to PM requesting him to restore the rate of interest to 9.3% and consider increasing it to 10%.
: PMOPG/E/2016/0547219
Name Of Complainant : Mohit Pande
Date of Receipt : 04 Dec 2016
Received by : Prime Ministers Office
Forwarded to : Budget Division
Officer name : PRASHANT GOYAL
Officer Designation : Joint Secretary
Contact Address : Ministry of Finance
Department of Economic Affairs
168-B, North Block,110001
Contact Number : 23093183
e-mail :prashant.goyal@nic.in
Grievance Description : The Senior Citizen Savings Scheme (SCSS), 2004 is a deposit scheme guaranteed by the Government of India to provide 9% Return to senior citizens through a safe investment. This scheme ensures a Regular Income stream for senior citizens in retirement. After 11 years the rate was increased to 9.3% on April 1, 2015. Now it has been reduced to 8.5% from October 1, 2016. There are more than 10 Crore senior citizens who do not get Government pension and are affected by reduction in interest rate on SCSS. The interest earned on the SCSS deposit is fully taxable. There is also a limit on maximum amount of 15 Lakh Rupees. The objective of SCSS, which is a Welfare Scheme, is to ensure a Regular Income stream to senior citizens in retirement, therefore it is not a Term Deposit with banks and it's rate of interest should be constant and not fluctuate with changes in Repo Rates announced by RBI. The interest rates on other Term Deposits with banks have come down to 7% from 9.75% due to demonetisation. This is hurting the retired people very badly who depend on interest income for day to day expenses. Therefore we request you to kindly restore the return on SCSS to 9.3% immediately and consider revising it to 10% in view of rising costs of essential items and medical care.
Date of Action : 17 Jan 2017
The response received is attached for information. more
: PMOPG/E/2016/0547219
Name Of Complainant : Mohit Pande
Date of Receipt : 04 Dec 2016
Received by : Prime Ministers Office
Forwarded to : Budget Division
Officer name : PRASHANT GOYAL
Officer Designation : Joint Secretary
Contact Address : Ministry of Finance
Department of Economic Affairs
168-B, North Block,110001
Contact Number : 23093183
e-mail :prashant.goyal@nic.in
Grievance Description : The Senior Citizen Savings Scheme (SCSS), 2004 is a deposit scheme guaranteed by the Government of India to provide 9% Return to senior citizens through a safe investment. This scheme ensures a Regular Income stream for senior citizens in retirement. After 11 years the rate was increased to 9.3% on April 1, 2015. Now it has been reduced to 8.5% from October 1, 2016. There are more than 10 Crore senior citizens who do not get Government pension and are affected by reduction in interest rate on SCSS. The interest earned on the SCSS deposit is fully taxable. There is also a limit on maximum amount of 15 Lakh Rupees. The objective of SCSS, which is a Welfare Scheme, is to ensure a Regular Income stream to senior citizens in retirement, therefore it is not a Term Deposit with banks and it's rate of interest should be constant and not fluctuate with changes in Repo Rates announced by RBI. The interest rates on other Term Deposits with banks have come down to 7% from 9.75% due to demonetisation. This is hurting the retired people very badly who depend on interest income for day to day expenses. Therefore we request you to kindly restore the return on SCSS to 9.3% immediately and consider revising it to 10% in view of rising costs of essential items and medical care.
Date of Action : 17 Jan 2017
The response received is attached for information. more
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Aug 22
Thanks that you have taken this to the PM. It is totally unfair on the part of the RBI to go on reducing the deposit rates to appease the borrowing industries which don't repay and clear the debt. Look at the mounting NPA of SBI! Let us hope that the PM, a Senior Citizen like us, do something to other Sr Citizens. more
Aug 22
Varadaraj Kr . Yes that's the need of the day. Govt. should be pressurised to take such step. more
Apr 01
This is good, but we have to pray for exemption of IT on the interest earnings also without a cap. The present ceiling of 10,000 pa is quite insufficient and unhelpful. more
Mar 30
