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 retired employees of PSUs (Public Sector Undertakings) on their retirement benefits.
Employees retired from Public Sector Banks, Life Insurance Corporation, General Insurance Corporation and other Public Sector Companies are also eligible.
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made after one year from the date of deposit but before the expiry of 3 years in which case interest on the amount so withdrawn will be payable at 4%from the date of deposit upto the date of withdrawal.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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