No new accounts are opened under the Scheme from the close of business on 9-7-2004. [Notification : No. F. No. 15-01/2004-NS-II(i), dated 9-7-2004]
This scheme offered an option to earn a tax free income to retiring/retired employees of Central and State Governments on their retirement benefits.
The depositor can continue the account after three years.
Premature encashment can be made after one year from the date of deposit but before the expiry of 3 years in which case interest on the amount so withdrawn will be payable at 4% from the date of deposit upto the date of withdrawal.
The account is operated through all branches of the State Bank of India and selected branches of nationalized banks.
The depositor can continue the account after Three years.
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