Pradhan Mantri Sukanya Samriddhi Yojana Guidelines – New Amendments

Published Date - 25 September 2017 04:30:36 Updated Date - 25 October 2017 05:45:37

Sukanya Samriddhi Yojana/Scheme is a government scheme, launched by PM Narendra Modi. The scheme is completely aimed for the betterment and upliftment of the girl child in the country and to save money for the girl child to gave her a good education and for taken care of her wedding expenses in every family. The scheme is an initiative taken by the government to save girl child in the country as Mr. Modi chanted the slogan of “Beti Bachao, Beti Padhao” and well connected it to the Sukanya Samriddhi Yojana. This scheme is, guaranteed a financial security and financial dependence for a women in his hard times. And the one most important and beneficial feature of the scheme is that only the girl child (account holder) can withdraw the deposited amount and not even her parent or guardian (depositor) is not authorized to withdraw money on behalf of the girl.

The scheme was introduced in January, 2015 and the Finance Ministry gave authorization to lots of public and private sector banks, as well as the post offices for opening accounts, since then a huge number of customers have already applied for it and many more applying for it.

Central Government has updated the guidelines of Sukanya Samriddhi Yojana. The government has made several changes for those willing to invest in the scheme this financial year. The changes in the scheme will ensure procedural efficiency and financial security of the girl child.

There have been many investor friendly changes in the scheme which were affected by the finance ministry’s move to introduce market-linked interest rates in small savings schemes. Last year, the Sukanya Samriddhi Yojana fetched 9.1% return to the investors.

The government has planned to amend the interest rates on quarterly basis. The interest rate for April to June 2016 quarter would be 8.6%.

15 New Amendments to Sukanya Samriddhi Account Deposit Scheme Rules

Below are some of the revised rules of Sukanya Samriddhi Account;

  1. 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.
  2. SSA & Adopted Daughter : The new rules have made it clear that Sukanya Account can be opened even in the name of an adopted Daughter.
  3. Resident Indian Girl Child : Only an Indian Resident Girl Child can be the Beneficiary under the SSA Rules.
  4. 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. 
  5. 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.

6.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.

7.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).

8.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.

9.Duplicate Passbook : In the event of loss of passbook, a duplicate passbook can be issuedon payment of Rs 50. The guardian or the account holder has to submit a written request to get a duplicate SSA passbook.

10.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.

11.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.

12.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.

13.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 intendingto get married.

14.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.

15.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.

Sukanya Samriddhi Yojana is a small saving account under which the parents can open an account in the name of Girl child and save money for her future.

An investment of up to Rs. 1.5 Lakh per year can be made under the SSY. Sukanya Samriddhi Yojana was launched by the Prime Minister Mr. Narendra Modi on 21st January 2015; under the Beti Bachao, Beti Padhao Campaign.

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