Sukanya Samriddhi Yojana Rule Update: Key Changes Parents Must Know

The Sukanya Samriddhi Yojana (SSY), one of the most popular savings schemes for securing the financial future of girls, has undergone a significant rule change. Effective from October 1, 2024, the Government of India has introduced a crucial modification that impacts who can open and manage these accounts.

This change is especially important for families currently enrolled in the SSY scheme or those planning to open an account for their daughters. Let’s dive into what’s changed, how it affects you, and how to make sure your daughter’s future remains secure.

What is Sukanya Samriddhi Yojana (SSY)?

Sukanya Samriddhi Yojana is a government-backed small savings scheme specifically designed to help parents save for their daughter’s future. Introduced under the “Beti Bachao, Beti Padhao” initiative, the scheme provides a secure platform for saving towards the higher education and marriage of a girl child.

Parents or guardians can open an SSY account for their daughter before she turns 10. The scheme offers attractive interest rates and comes with tax benefits, making it one of the best savings options for girls in India.

What’s the New Rule for Sukanya Samriddhi Yojana?

From October 1, 2024, the government has implemented a significant change in the rules of the Sukanya Samriddhi Yojana. This new rule restricts who can open and manage an SSY account. Here’s what you need to know:

1. Only Legal Guardians Can Manage the Account: According to the new rule, only legal guardians or parents are eligible to open and operate an SSY account. If the account was previously opened by a relative such as a grandparent, uncle, or aunt, it must now be transferred to the legal guardian or parent. This change aims to streamline account management and ensure that only immediate guardians are responsible for the account.
2. Account Transfer Requirement: If an SSY account has been opened by someone other than the legal guardian, it must be transferred to the rightful guardian by October 1, 2024. Failing to do so may result in the account being closed

How to Transfer the Sukanya Samriddhi Account?

If your daughter’s SSY account is held by someone other than her legal guardian, you must take action immediately to transfer it. Here’s the step-by-step process for transferring the account:

1. Visit the Bank or Post Office: Go to the bank or post office where the account was originally opened.
2. Submit Required Documents: You will need to submit the following documents to initiate the transfer:

2. Birth certificate of the girl child
3. Identity proof of the parents or legal guardian (Aadhar card, PAN card, etc.)
4. Residence proof (Ration card, Voter ID, electricity bill, etc.)
5. Aadhar card of the child (if available)
6. Passport-sized photo of the account holder (guardian)
7. Sukanya Samriddhi account passbook
8. Nominee details, if applicable
9. Proof of legal guardianship (if not the parent)
10. Complete the Transfer Form: Fill out Form-1, which is the application form for the account transfer.
11. Verification Process: Once you’ve submitted all the documents, the bank or post office will verify the information and update the account details with the new guardian’s information.

Sukanya Samriddhi Yojana (SSY) Interest Rate for 2024

The Sukanya Samriddhi Yojana currently offers an interest rate of 8.2% per annum for 2024. This rate is reviewed and determined by the government every quarter, making it a lucrative option compared to other savings schemes. The interest is compounded annually, allowing your savings to grow steadily over time.

To take full advantage of this attractive interest rate, regular deposits must be made into the account. Even after the deposit period ends, the account will continue to earn interest until it matures.

How to Open a Sukanya Samriddhi Yojana Account?

If you’re planning to open an SSY account for your daughter, the process is simple. Here’s a quick guide on how to get started:

1. Eligibility Criteria:

1. The account can be opened for a girl child below 10 years of age.
2. Parents or legal guardians can open an account for up to two daughters (in some cases, a third daughter is allowed, if twins are born in the second birth).
3. Required Documents:

2. Birth certificate of the girl child
3. Identity proof of the guardian (Aadhar, PAN, Voter ID)
4. Residence proof (Ration card, electricity bill, etc.)
5. Aadhar card of the girl child (if available)
6. Passport-size photograph of the guardian and the girl child
7. Minimum Deposit: To open the account, you need to deposit a minimum of ₹250. The maximum deposit allowed in a financial year is ₹1.5 lakh.
8. Account Operation:

4. The SSY account remains operational for 21 years from the date of opening or until the girl child gets married after the age of 18.
5. Deposits can be made for the first 15 years, after which no deposits are needed, but the account will continue to earn interest.

Sukanya Samriddhi Yojana Withdrawal Rules

One of the most attractive features of the SSY is the flexibility it offers in terms of withdrawals. Here are the key rules:

1. Partial Withdrawals: Once the girl child turns 18, up to 50% of the account balance can be withdrawn for higher education or other essential expenses. This feature is especially useful for parents looking to fund their daughter’s education.
2. Premature Closure: In case of emergencies such as severe illness or the death of the girl child, the account can be closed prematurely after 5 years. Necessary documents must be provided to support the closure request.
3. Maturity and Full Withdrawal: Upon reaching the age of 21 or on the marriage of the girl after the age of 18, the entire balance, including interest, can be withdrawn. This amount is tax-free, ensuring that the girl child receives the maximum benefit from the scheme.

Sukanya Samriddhi Yojana Tax Benefits

The Sukanya Samriddhi Yojana offers multiple tax benefits under Section 80C of the Income Tax Act. Here’s how you can save on taxes through the scheme:

1. Deposits Exempt from Tax: The amount you deposit into the SSY account qualifies for a tax deduction under Section 80C, up to ₹1.5 lakh annually.
2. Interest is Tax-Free: The interest earned on the deposits is completely tax-free, making the SSY one of the most tax-efficient savings options for parents.
3. Maturity Amount is Exempt from Tax: The entire maturity amount, including the accumulated interest, is also exempt from tax, giving your daughter a substantial financial boost when she needs it the most.

Benefits of Sukanya Samriddhi Yojana for Girls

The Sukanya Samriddhi Yojana offers numerous benefits for families looking to secure the future of their daughters:

1. Encouraging Education: The scheme encourages parents to save for their daughters’ higher education, ensuring that financial constraints do not become a barrier to their academic success.
2. Financial Assistance for Marriage: Parents can use the savings to cover their daughter’s wedding expenses, providing financial relief at a crucial time.
3. Long-Term Security: The SSY account offers a secure and reliable way to save money over the long term, with guaranteed returns and the added advantage of tax exemptions.
4. Promoting Gender Equality: Launched as part of the “Beti Bachao, Beti Padhao” campaign, the scheme aims to empower girls and promote gender equality by providing financial security for their future.

Important Points to Remember

• Account Validity: The SSY account is valid for 21 years or until the girl child gets married after 18.
• Deposit Period: You must deposit funds for the first 15 years. After that, the account will continue to earn interest without additional deposits.
• Account Closure: If the girl child passes away, the account can be closed, and the balance will be paid to the legal guardians.
• Penalty for Non-Deposit: If you fail to deposit the minimum annual amount of ₹250, the account will become inactive. To reactivate it, you must pay a penalty of ₹50 along with the required minimum deposit.