Banks told not to levy penalty on withdrawals in Senior Citizen Savings Scheme, due to death
The Hindu
As per rules, no deduction shall be made in case of premature closure of an account at any time due to death of a depositor, said the Indian Banks’ Association
The Indian Banks’ Association (IBA) has written to member banks urging them not to levy penalties on withdrawal from Senior Citizen Savings Scheme (SCSS) by a nominee or legal heir, due to the death of deposit holders. “We have come across complaints that some banks while processing settlement/premature payment of the accounts to the legal heirs/nominee of the deceased depositor under SCSS are treating it as premature withdrawal and levying ‘penal interest’,” IBA said in its communication.More Related News