Sukanya Samriddhi Account Deposit Scheme is one of the most popular small saving schemes in India. This scheme was launched in January, 2015. Since then, it has been estimated that around 76 Lakhs Sukanya Samriddhi Yojana Accounts have been opened across the country. The amount collected under these accounts is around Rs. 2, 838 crore (up to October, 2015).
Sukanya Samriddhi Account (SSA) can be opened in the name of girl child only. Post offices and Commercial banks (Public / Private Sector) have been authorized by the Govt to open SSAs.
Though Sukanya Samriddhi Scheme is a simple financial product, there has been some confusion with respect to some of its features, operation of account, premature withdrawal, account transfer, NRI & SSA, closure of account etc.,
To clear this confusion, the govt has recently issued a notification highlighting some new changes / amendments to ‘Sukanya Samriddhi Account Deposit Scheme’.
15 New Amendments to Sukanya Samriddhi Account Deposit Scheme Rules
Below are some of the revised rules of Sukanya Samriddhi Account;
- Definition of Account Holder & Beneficiary : Account holder means a person in whose name the Account is held. Girl child is the beneficiary under SSA. The amount can be deposited by the account holder (girl child) or by her parent/guardian.
- SSA & Adopted Daughter : The new rules have made it clear that Sukanya Account can be opened even in the name of an adopted Daughter.
- Resident Indian Girl Child : Only an Indian Resident Girl Child can be the Beneficiary under the SSA Rules.
- Rate of Interest : As per the old rules, the rate of interest will be declared on an yearly basis. Now, the Government can amend the Interest Rate from time to time. (Read : Latest Small Saving Schemes & Rate of Interest – New guidelines)
- Minimum Amount & Account Default Rules :
- The minimum amount that has to be deposited in SSA is Rs 1,000 p.a.
- If the min amount is not deposited, account will be treated as ‘Account in Default‘ and such accounts can be regularized on payment of a penalty of fifty rupees per year.
- The new rules also specify that if the defaulted account is not regularized within fifteen years of opening the account, then the whole deposit amount (including the deposits made prior to the date of default) shall be eligible to get Post Office Savings Bank interest rate at the time of its maturity.
- In case if the reason for default is due to the death of the ‘Guardian’ of the child, the above rules won’t be applicable. The account holder will get normal SSA interest rate.
- Maximum Deposit : The maximum amount that can be deposited in SSA is Rs 1.5 Lakh per fiscal year. In case deposit in excess of one lakh fifty thousand rupees in any financial year is accepted due to any accounting error, such excess amount will not be eligible for any interest. The depositor can withdraw such excess amount anytime.
- Online Payment Mode : As of now, deposits can be made in the form of cash/by cheque/by DD only. The new rules have clarified that ‘online payment mode’ (electronic transfer) is also acceptable provided that the post office or bank has access to CBS facility (Core Banking Solution).
- Interest Calculation Procedure : Under SSA, the interest is compounded on yearly basis. The interest amount is calculated for the calendar month on the lowest balance in an Account on the deposits made between the close of the tenth day and the end of the month. So, it is now clear that no interest is paid on deposits made after 10th of the month for that specific month.
- Duplicate Passbook : In the event of loss of passbook, a duplicate passbook can be issued on payment of Rs 50. The guardian or the account holder has to submit a written request to get a duplicate SSA passbook.
- Transfer of Account : SSA can be transferred from a bank to a post office branch (vice versa) at free of cost. The guardian or the account holder has to furnish proof of shifting of residence. Even if you are not relocating, you can transfer the account by paying a fee of Rs 100 to the post or to the bank to which the transfer is being made.
- Withdrawal for Education Purposes :
- Withdrawal of upto a maximum of fifty per cent of the balance in the Account at the end of the financial year preceding the year of application for withdrawal, shall be allowed for the purpose of higher education of the Account holder.
- Provided that such withdrawal shall not be allowed unless the Account holder attains the age of eighteen years or has passed tenth standard, whichever is earlier.
- The withdrawal can be made in lump sum or in installments not exceeding one per year, for a maximum period of five years.
- The guardian or the account holder has to submit a documentary proof of confirmed admission in an Educational institution (or) a Fee-slip from such institution.
- Account Closure & Age Proof : To close a SSA account, age proof has to be submitted to prove that the girl child is not less than 18 years of age.
- Account Closure & Marriage : Earlier premature withdrawal is allowed after the girl child’s marriage takes place but now withdrawal is possible even if Depositor is intending to get married.
- Change of Citizenship :
- If after opening of account, Account holder becomes a non-citizen or non-resident of India (NRI), he/she (guardian/parent/girl child) has to intimate the same within a period of one Month and her account will be deemed as closed.
- Interest is not be paid on such Accounts.
- Post Account Closure & Interest Payment : As per the old rules, post maturity (after 21 years from the date of account opening) even if account holder does not close the account he/she was eligible for interest till the final closure of the account. But as per the new amendments, if an account completes twenty-one years, no interest amount is payable.
I hope you find this post useful and informative. Are you contributing to Sukanya Samriddhi Account Deposit Scheme? Kindly share your experience and views on SSA.
(Image courtesy of chubphong at FreeDigitalPhotos.net) (Post published Date : 05-April-2016)
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My daughters account is due for deposit however when I deposited I was told that the amount is in excess of 15.lakh which is maximum, however I have not deposited the amount in this year. Please let me know what do you think this is happening. Its a bit urgent as the year ending is 31 March. Please write to me on my email.
Sorry typo error its 1.5
SSA Scheme opened for my Daughter nominee I choose my Wife Name 4yrs before I need to change the Nominee as my name due to Taxation I can show the amount can you please guide me
Dear Sreekanth garu,I am NRI. I have 2 daughters and both are staying in India only.Both daughters have indian passports onlyMy wife already opened SSYA for my first daughter 2 years back still ongoing.Can I continue to open for my second daughter also? Pls guide whether I need to continue or close the first daughter SSYA.
Dear Rama,
As your daughter is still a Resident of India, you can continue with your investments in SSA.
But, I doubt if you (NRI) can open a fresh SSA account as your Residential status is NRI and Small savings accounts are available for NRIs.
You may also check on this with any bank that offers SSA.
In the case of divorce by wife to his husband,how money can withdraw prematurely…what was the provisions?if custody of daughter with wife,how father can withdraw deposited money?Thank you in advance.
Dear MANISH,
Only a girl child can withdraw the amount, the account is meant for her future.
In such a scenario, mother can continue contributing to the account I believe..
What if Husband invested on his daughter’s name but after 5 year of investment baby’s mother want to divorce from her husband so how husband can redeem that money to give her mother or what is the solution in case of divorce?no body questioned & nowhere its mentioned too..TIA.
Dear Sumit,
The money is meant for Girl child’s future right?? and not for mother’s..
but what if she denied to accept it because of not liquid?
Hi Sreekanth, for below point in 11th point above, “The withdrawal can be made in lump sum or in installments not exceeding one per year, for a maximum period of five years.”
I checked at this link, in any of Gazette pdf, I am unable to see this stament, Can you please share the link where you have seen this or help me for understanding the Gazette rule.
This stmt menas, multiple withdrawals from 15 yrs to 21 yrs, which is really good thing.
Dear Anand,
50% of outstanding balance in the Account can be withdrawn as lump sum or installment in a year for 5 years. Multiple withdrawals are not allowed in a year.
For example : If total balance is Rs 1 lakh, 50% ie Rs 50k can be withdrawn in a year as lump sum or in installments in that year say Rs 25k + Rs 25k.
This is my understanding!
Hi pratap here. The case pertains to my neighbour. The mother has opened an SSA ac for her daughter and She expired. Now her Husband wants to continue the SSA AC and deposit further. Now her daughter age is 11. Please guide.
Dear Pratap,
Yes, her father can continue depositing the money in his child’s SSA account.
Hi sreekanth ,
Can grand parents contribute to ssy account directly or it can be done only thru parents
Dear Kashi,
Sukanya Samriddhi Yojana saving scheme authorizes parents of the girl child or legal guardians, in the absence of parents, to open an account. .
However, grand parents can gift the amount to their grand children and parents can invest that amount in SSA.
Cant Grand parent’s directly pay into that account ?
Dear Kashi ..I dont think so..
Can grand parents contribute to this account
MY DAUGHTER SSY ACCOUNT UNDER GUARDIAN OF MY WIFE. Only GARDIAN can depisite money in SSY account?
Her Uncle and Her grandfather can depsite money through Cash/Cheque.
Dear Mr Patel.. Yes, only your spouse has to make the contributions ..
Hii
I want to transfer my daughter’s ssy account from post office to Icici bank. We have raised this raised this request in July 2019 in post office. So post office gave us the passbook which calculated interest till June 2019.
But icici bank is telling that they will not consider the interest amount for April may June.
So what to do now as both parties are not ready to agree.
Dear Monika,
I think once the transfer gets completed, the interest amount will be payable on the accumulated balance. You may reconfirm this with ICICI (preferably through email communication).
Can I submit a variable amount deposit from 1000 to 5000 ?
Can I transfer a payment online ?
Dear Shalender,
Yes, you can deposit variable amounts.
For online provision, kindly check with your bank/service provider..
Hi,
Does the scheme allows to deposit after 14 years also or after 14th year we cannot deposit?we need to wait till 18 years completion or 21 year completion.what is the math behind 14 years if we contribute another 4 years there will be a very good compounding happening.
Dear Rajan,
Kindly note that deposits can be made for 14 years from ac opening date.
The scheme would mature on completion of 21 years from the date of opening of the account, with an option of keeping the account till marriage. So, the maturity of the account is 21 years from the date of opening of account or if the girl gets married before completion of such 21 years (whichever is earlier).