General Studies · Banking Rules

Identify the incorrect statement among the following retail liability banking norms in India: Statement 1: Senior Citizen Savings Scheme (SCSS) interest is taxable, and TDS is deducted if interest exceeds the prescribed threshold unless Form 15H is submitted. Statement 2: A Non-Resident External (NRE) term deposit must be opened for a minimum period of 1 year, and no interest is payable if withdrawn early. Statement 3: Accounts with no customer-induced transactions for over two years are classified as inoperative/dormant. Statement 4: For recurring deposits, the maximum permissible tenure aligns with the 10-year limit of regular fixed deposits. Statement 5: Nomination is optional, but banks must obtain a written refusal if a customer chooses not to nominate. Statement 6: A minor of any age can independently open and operate a regular commercial current account for business operations. Statement 7: The Mahila Samman Savings Certificate has a tenure of 2 years with a fixed interest rate and a maximum deposit limit of 2 lakh.