SCSS FRAUD BY BANKS
Real experience related to SENIOR CITIZEN SAVING SCHEME (SCSS) DEPOSIT.
Banks have been found to looting our hard earned money.
- Senior citizens invest in SCSS for better interest rates (always 0.7% higher than PPF) and safety as it is guaranteed by the Goverment of India.
However, fraud starts when the deposit holder dies and nominee/legal heir is forced to close the deposit by the law.
- Few Banks treat such closure as premature closure of deposits
- These banks therefore refund the original deposit money after deducting penalty.
- This deduction is the fraud and most accept this deduction as genuine deduction as they lack the knowledge or they don’t have time to follow up with authorities.
- *Income Tax website clearly mentions rules governing SCSS deposit. *Sub Section 5 of Rule 8, clearly states that no penalty deduction shall apply in case the deposit holder dies.The original gazette notification for this SCSS scheme is 490 (E).*
Some one has just experienced this fraudulent deduction from BANK OF INDIA KANDIVALI (W) station branch, Mumbai. He fought for about 45 days with the bank with e-mails to higher authorities, personal visits and twitter tagging. Eventually he received about Rs. 9,500 back from the bank that was deducted as penalty treating the SCSS deposit closure as premature despite the fact that the closure was due to death of the deposit holder.
Just imagine how many SCSS deposit holders must be dying every year and amount that banks may be deducting as penalty for closure!
Update your information on such schemes. Be aware. We request all RETIREES ASSOCIATIONS & FEDERATIONS, & individuals, to take up the matter with finance ministries and IBA & CEO OF all banks to issue, IMMEDIATELY, circular to STOP this unjust & cruel penality to widow of deceased depositor.
This may be of interest to our Group Members 👆
[18/07, 05:07] K O Samuel:
Hello PASS_PASS.ORG members/ Indian Citizens,
Banks will recover such amounts from thousands and lakhs of Widows and Widowers to make up the loss of Loans given to poor people like Mehul Chowksi, Vijay Mallya etc who have fled from India with thousands of Crores of rupees.
Similar to above case, my fight is on with Bank of Baroda (BoB), Palm Avenue, Kolkata to recover our family’s hard earned money lying in the Account of my deceased wife which was not having a nominee, though I had given a couple of Affidavits and Legal Heir Certificate from a First Class Magistrate. Now I have partially gathered and further gathering information from BoB which is not divulging full information using/misusing the provisions of RTI Act, so that the general public do not get to know the intricacies by which they try to deprive the beneficieries by one way or the other. Now my RTI queries are pending at the Central Information Commission, Delhi as the information provided by BoB’s Public Information Officer and then the Appellate Authority are half cooked.
BoB further wants two Sureties from general public, ACCEPTABLE TO THE BANK, with their PERSONAL DETAILS, like their Income details/Certificates, their all Bank Accounts, LIC Policies, Shares, Property details including HOW ACQUIRED, details of dependents etc etc. Now I was wondering why Banks/Govt are after Mehul Chowksi who fled with 1250 Crores, if PNB must have taken two Sureties, of 2500 Crores (1250 x 2) , from Indian public and must have recovered it, which is public money, while the money in the name of my wife is my family money with them on which BoB is earning interest, so not interest-ed to settle.!!
My fight is on with BoB. Let’s see how far it goes.!!
So, Indian Citizens, it’s important to have KYB (Know Your Bank) like KYC, while opening and maintaining Accounts.!! 🤷🏼♂️