Sukanya Samriddhi Account under Small Savings Schemes: New Features

SB Order No.03/2016

F.No.116-57/2014-SB

Government of India

Ministry of Communications & IT

Department of Posts

Dak Bhawan, Sansad Marg,

New Delhi-110001.

Date: 08 .04.2016

Sir/ Madam,

Please refer to this office SB Order No.2/2015 dated 21.1.2015 vide which original notification No. GSR 863E dated 2.12.2014 on the above subject was circulated. Now, Min. of Finance(DEA) has issued fresh notification No. 323 (E) dated 18.3.2016 in supersession of the earlier notification dated 2.12.2014. Now. SSA Account already opened prior to 18.3.2016 and opened after 18.3.2016. shall be governed by this notification. 

Copy of the notification is enclosed. Following are the main features of the new notification:-

(i) Sukanya Samriddhi Account can be opened by:-

(a) The natural or legal guardian in the name of a girl child who has not attained the age of ten years on the date of opening of the Account and in the name of girl child who has born on or after 2.12.2003. the Account may be opened till one year from the date of the original Notification of the Sukanya Samriddhi Account rules i.e.upto 2.12.2015.

(b) Guardian may open and operate only one account in the name of a girl child under these rules.

(c) Birth certificate of a girl child in whose name the account is opened shall be submitted by the guardian at the time of opening of the account in post office along with other documents relating to identification and residence proof of the depositor.

(d) Such Accounts can be opened for maximum two girl children in one Family, provided that more than two Accounts can be opened for Beneficiaries in a Family if such Beneficiaries are born in the first and/or in the second order of birth. on production of a certificate to this effect from the competent medical authorities regarding the birth of such multiple girl children in the first two orders of birth in a Family;

Provided further. that the above proviso will not apply to the Beneficiaries of the second order of birth if the first order of birth in a particular Family. already had two or more surviving Beneficiary Account holders.

(Rule 4 of SSA Rules 2014)

(e) Birth Certificate of Girl Child is mandatory to be submitted. In case proper birth certificate is not available Certificate of date of birth from school given by Headmaster or a certificate from Head of the village showing date of birth of the girl or a certificate from hospital where the girl child was born can be taken. In addition to this, Passport, Aadhar card and PAN card of girl child if available can be accepted as age proof for Opening of Sukanya Samriddhi Account in case date of birth certificate of girl child is not available.

(Addendum to SB Order No.2/2015 dated 26.2.2015 & SB Order No.11I2015 dated 28.9.2015 holds good)

(ii) Types of Sukanya Samriddhi Accounts

Only a Minor account through Guardian can be opened under this category.

(Rule 4 of SSA Rules 2014)

(iii) Number of Sukanya Samriddhi Accounts. CD

A natural or Legal Guardian can open one account in the name of one Girl Child subject to maximum two accounts in the name of two girl children. Account cannot be opened in the name of same girl child by both guardians. 

(Rule 4 of SSA Rules 2014)

(iv) Passbook

(a) On opening an Account. the guardian shall be given a pass book bearing the name. address and date of birth of the Account holder. date of opening of Account. Account number. name and address of the guardian, relationship with the Account holder and the amount deposited.

(b) A duplicate passbook may be subsequently issued in the event of loss. mutilation, etc., of the original passbook. on the written request of the guardian or the Account holder. on payment of a fee of fifty rupees and such fees shall be creditable to the Government account.

(c) The guardian or the Account holder shall have the option to maintain the Account records exclusively in electronic form, provided the post office concerned has access to the facility of CBS.

(v) Minimum amount for opening of Basic Savings Account, 

Rs.1000/- minimum amount is required at the time of opening of Sukanya Samriddhi Account.

(Rule 5 of SSA Rules 2014)

(vi) Minimum/Maximum amount to be deposited in Sukanya Samriddhi Account.

Minimum of Rs.1000/- has to be deposited in each financial year and maximum of Rs.1,50,000/~ can be deposited in a financial Year. If any excess amount is deposited in a financial year, no intesrest shall be admissible on the excess amount and excess amount can be withdrawan at any time.

(Rule 5 of SSA Rules 2014)

(vii) Mode of deposit of opening of account.

(a) By Cash, cheque or demand draft drawn in favour of the postmaster of the concerned post office or the Manager of the concerned bank where the account stands and an endorsement on the back of such instrument shall be made and signed by the depositor indicating name of the account holder and account number in which the deposit is to be credited.

(b) Where deposit is made by cheque or demand draft, the date of encashment of the cheque shall be the date of credit to the account.

(c) if Post Office is on CBS.deposit can be made through electronic mode also.

(Rule 6 of SSA Rules 2014)

(viii) Subsequent deposit

Subsequent deposits can be made in Sukanya Samriddhi Accounts in the multiple of Rs.100/- with minimum of Rs.1000/- and maximum Rs.1,50.000/- in a financial year. Deposits in an Account may be made till the completion of fifteen years. from the date of opening of the Account only. For example. if account was opened on 13.5.2014, deposits can be made up to 12.5.2029 only. 

(Rule 5 of SSA Rules 2014)

(ix) Subsequent withdrawal

To meet the financial requirements of the account holder for the purpose of higher education, withdrawal up to maximum fifty percent of the balance at the credit, at the end of the preceding financial year from the date of application made for first withdrawal shall be allowed to the girl child after attaining the age of 18 years or passing 10th Standard whichever is earlier. Withdrawals can be made in installments also. However. only one withdrawal can be made in one financial year subject to max. 5 withdrawals within the over all limit of 50% balance at the credit of the preceding financial year from the date of first application made for withdrawal.

(Rule 12 of SSA Rules 2014)

Following conditions will also apply for the withdrawal:-

(a) The documentary proof in the form of a confirmed offer of admission of the Beneficiary Account holder in an educational institution or a fee-slip from such institution clarifying such financial requirement shall be submitted along with the request for withdrawal.

(b) The amount of withdrawal shall be restricted to the actual demand of fee and other charges required at the time of admission as shown in the offer of admission or the relevant fee-slip issued by the educational institution.

(x) Nomination

Nomination facility is not available in these accounts.

(xi) Interest

Interest rate as notified by the Government from time to time will be applicable for each financial year. From 1.4.2016. the interest shall be 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 & credited on lst April of each financial year.

(xii) Maturity of account

The account shall mature on completion of twenty-one years from the date of opening of account. If account is not closed after completion of 21 Years, no interest will be payable. For closure of account, following process has to be followed:-

(a) Account holder (Girl Child) has to submit Documentary proof of Fresh Identity, Residence and Citizenship are to be presented along with Account Closure Form.

(c) Age proof to prove that account holder has attained the age of 18 years if closure is applied before completion of 21 Years from date of opening. In this case, account can be closed only within 1 month before proposed marriage date or after 3 months from the actual date of marriage.

(Rule 13 of SSA Rules 2014)

(xiii) Premature Closure

(a) In the event of death of the Beneficiary Account holder (Girl Child). the Account shall be closed from the date of such death, on the production of death certificate issued by the competent medical authority. and the balance at the credit of the Account and interest thereof till the date of death shall be paid to the Guardian. Interest on such Accounts shall be eligible only till the date of death of the Account holder.

(b) If the Account holder (Girl Child) becomes a non-citizen or non-resident of India after opening of the Account, intimation to this effect shall be given by the Guardian or the Account holder to the Post Office concerned. within a month of change of such status. Such Account shall not earn any interest from the date of the change of status of the Account holder’s citizenship or residence. Such Account shall be deemed to be closed prematurely from date of such change of residence status or citizenship of the Account holder even if the intimation is given late (for whatever time) to the Post Office concerned.

(c) From the date of such deemed closure. the Account shall be treated as irregular and not earn any

interest. Balance at the credit of such Account on date of such deemed closure shall be:

(i) returned. along with Interest due for such Deposit. to the Account holder and if the account holder is not alive, then to the Guardian

(ii) in case any Interest was credited to the Account from such date of change of residence status or citizenship of the Account holder, it will be recovered and credited into the Government Accounts.

(d) Where the Post Office (power of sanction of such closure is delegated to Head of the Postal Division/Sr. Postmaster/Chief Postmaster/Director) is satisfied that the operation or continuation of the Account is causing undue hardship to the Account holder, it may. after complete documentation, by order and for reasons to be recorded in writing, allow premature closure of the Account but only in cases of extreme compassionate grounds such as medical support in life-threatening diseases of the Beneficiary Account holder or death of the Guardian, but in any case. not before 5 years of opening of such Account.

(e) If an application is made for premature closure for the reasons other than above, the premature closure may be permitted on condition that the account shall be treated as Savings Account from date of opening and whole Deposit would be eligible only for interest rate prescribed for Post Office Savings Bank. Excess interest credited in such cases will be recovered from the balance in the account. (For the time being such closures should not be allowed till software solution is provided for the same.) 

(xiv) Operation of account.-(1) shall be operated by the Guardian till the Beneficiary Account holder attains 10 years of age; or may be operated by the Guardian till the Beneficiary Account holder attains majority or may be directly operated by the Beneficiary Account holder after she attains 10 years of age.

(Rule 8 of SSA Rules 2014)

(xv) Miscellaneous

(a) Issue of pass books.

On opening of account, Passbook shall be given bearing name. address, and date of birth of the Account holder (girl child), date of opening of account. Account number, name & address of guardian. relationship with Account holder and amount deposited. Duplicate Passbook may be issued in the event of loss. mutilation etc. to the original passbook on written request and payment of fee of Rs. fifty. In case of CBS Offices. the Guardian or Account holder can maintain account in electronic form.

(b) Transfer of account

Account transfer from one post office to another and from one post office to Bank and vice versa can be allowed free of cost. if change of residence proof is submitted. Otherwise. account transfer fee of Rs.100/- shall be charged. Account standing at non CBS Post Office cannot be transferred to CBS Post Office or vice versa and transfer of account to and from Bank. procedure as prescribed for PPF accounts shall be followed.

3. This may kindly be circulated to all CBS and non CBS Post Offices for information and necessary

Yours faithfully,

(Babu Lal Barolia)

Assistant Director (SB-I)