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)
This post was last modified on July 11, 2023 11:12 am
Sreekanth ReddySreekanth is the Man behind ReLakhs.com. He is an Independent Certified Financial Planner (CFP), engaged in blogging & property consultancy for the last 14 years through his firm ReLakhs Financial Services . He is not associated with any Financial product / service provider. The main aim of his blog is to "help investors take informed financial decisions." "Please note that the views given in this Blog/Comments Section/Forum are clarifications meant for reference and guidance of the readers to explore further on the topics/queries raised and take informed decisions. The information provided, therefore, should not be viewed as financial, legal, accounting, tax or investment advice."
View Comments
Dear sir,
can we check online ssy account opened by post office
Thanks Regards
Sanjoy Choudhary
Dear Sanjoy..I believe that there is no online provision to check your SSA account.
hi sir,
how to know that my ssy account opened by post office genuine and 2nd question can i transfer from post office to bank at same place
Dear Sanjoy..Yes, you can get it transferred.
Hi my wife has opened 2 sukanya samridhi accounts on our two daughters aged 7 and 10.around a year ago .Now she has moved abroad for job in gulf and we plan to stay there for next 10years.in few months children and i also will be moving abroad.please let me know If i can continue with SSS.also we have PPF in mine and wifes name.
Dear Ramesh,
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.
Kindly go through below articles :
* Latest NSC & PPF rules for Non-Resident Indians (NRIs) | New Amendments to PPF Act & NSC
* Residential Status – NRI or Resident? & NRI Taxation
Hello sir, can I increase my monthly instalment from rs. 1000/- to rs. 2000/-.
Dear Manas..Yes, you can increase the contribution amount, you may kindly contact your service provider..
Hello sir, If we cannot continue to pay after some years due to financial situation. What happens?
Dear Ravi,
"SSA Account may be opened with a minimum initial deposit of two hundred and fifty rupees and thereafter any amount in multiples of two hundred and fifty rupees may be deposited in an Account subject to the condition that a minimum of two hundred and fifty rupees shall be made as deposit in a financial year in one Account."
So, suggest you to kindly contribute atleast Rs 250 pa to keep the account active.
Hi sir,
Can we increase or decrease the amount paid per month after one year of opening the account.
Dear Balaji,
Yes, you can..
Dear Sreekanth sir,
I want to change my (mother of SSA account holder) surname (initial) in my daughter's SSA account. I am the mother of the concerned SSA account. I have given my husband's name as my initial while opening the account for my daughter. But, now I am departed from my husband but not legally divorced. Hence, I want to change my initial in my father's name, as all my documents are holding my fathers name as my surname. Is it possible to change? Pls advice.
Hi Sreekanth Garu,
How are you? I hope you are doing well!!
I have one query from my side...I want to update every month Sukanya amount transaction screens to my company regarding tax exemption purpose. But in SBI they said there is no provision for above.
Every month I have transferred amount from my HDFC to SBI sukanya account. How to get/check the balance or transaction proof for us to submit to company.
Please help to me(Through mail please).
Thanks in Advance
Regards
Satish
Dear Satish,
I am doing good, thank you!
You may get your SSA passbook udpated by your banker and can submit a copy of it to your employer.
Related articles :
* Income Tax Declaration & List of Investment Proofs
* Income Tax Deductions List FY 2018-19 | List of important Income Tax Exemptions for AY 2019-20
Hi Sreekanth Garu,
Thanks for your updates.
But I want to know the transaction status ONLINE like ppf view in sbi.
Is it possible to like that, then I will submit that screen shot to the employer.
Thanks
Satish
hello sir our current temporary address at gurugram can we change the address to surat after 5 year
Dear sanjoy ..Yes, you can get it updated.
How can I change SSY account guardian? My wife opened SSY account in her SBI account. I want to transfer SSY account into my SBI account where PPF, NPS other things manage from one place.
Dear Kashyap,
It may not be possible to change Parent name.
However, you may visit the concerned bank branch and check if this is possible.
"Change of guardian in sukanya samriddhi account is allowed due to death of a parent/guardian."