My blog is flooded with the comments regarding the withdrawal rules of sukanya samriddhi yojana. There is some serious confusion regarding the withdrawable amount clause of 50% at the age of 18 years of girl child and at the time of maturity. So I decided to provide a little write-up to clear all the confusions and doubts regarding premature withdraw, full withdraw and maturity rules of sukanya samriddhi account.
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Rule of Premature Closure of Sukanya Samriddhi Account
1. In the event of death of the account holder, the account shall be closed immediately on production of death certificate issued by the competent authority and the balance at the credit of the account shall be paid along with the interest till the month preceding the month of premature closure of the account, to the guardian of the account holder.
2. Where the Central Government is satisfied that operation or continuation of the account is causing undue hardship to the account holder, it may, by order, for reasons to be recorded in writing, allow premature closure of account only in cases of extreme compassionate grounds such as medical support in life-threating disease, death etc.
1. In the first clause above, it is simple to understand that if account holder is dead than in no case the account can be continued. The guardian by furnishing the death certificate to the account officer, get the money deposited along with the interest.
The amount receivable will be the account balance of the previous month of the premature closure of account. For instance, if the death certificate is furnished in November 2015, than the account balance at the end of the October 2015 will be given to the guardian.
2. The second clause of premature closure of account stats that if the financial condition of the account holder is not sound (sound here means extreme condition) and the money is needed than premature withdrawal and closure of account is permissible only if the reasons for discontinuance of account are given in writing. Please remember hardship needs to be genuine and could be proved if asked.
Withdrawal Rules of?Sukanya Samriddhi Account
1. To meet the financial requirements of the account holder for the purpose of higher education and marriage, withdrawal up to 50 percent of the balance at the credit, at the end of preceding financial year shall be allowed.
2. The withdrawal referred in sub-rule (1) shall be allowed only when the account holder girl child attains the age of eighteen years.
1. The first clause scribes that withdrawal up to 50 percent is allowed only to support the family financially to accomplish two things for the girl child:
- Higher Education, i.e. any course after the schooling such as Graduation, Post-Graduation etc.
- Marriage Purpose
Amount of Withdrawal
50 percent amount withdrawal will be calculated of the balance of the previous year in which the girl attains the age of 18 years or more. Let?s say, my daughter?s date of birth is 19th September, 2006, she will turn 18 in 19th September, 2024, now if I apply for 50% withdrawal, the amount would be 50% of the account balance as at 31st March, 2024.
Please note, even if 14 years of deposits are not completed, withdrawal under this rule can be made. In continuation of the above example, if I open the account on 1st April, 2015, than 14 years of deposits will be complete on 31st March, 2029, but my daughter will attain the age of 18 years in the years 2024, i.e. prior to the completion of the total deposits of 14 years. Still I would be able to get 50% of the account balance.
2. Withdrawal Rule in the first clause can only be used if and only if the girl attains the age of 18 years. This means prior to 18 years of age of girl child, no withdrawal will be entertained.
Rule on Closure on Maturity of?Sukanya Samriddhi Account
1. The account shall mature on completion of twenty-one years from the date of opening of the account:
Provided that where the marriage of the account holder takes place before completion of such period of twenty-one years, the operation of the account shall not be permitted beyond the date of her marriage:
Provided further that where the account is closed under the first proviso, the account holder shall have to give an affidavit to the effect that she is note less than eighteen years of age as on the date of closing of account.
2. On maturity, the balance including interest outstanding in the account shall be payable to the account holder on production of withdrawal slip along with the pass book.
3. If the account is not closed in accordance with the provisions of sub-rule (1), interest as per the provisions of rule 7 shall be payable on the balance in the account till final closure of the account.
1. Maturity of the account takes place after the completion of 21 years from the date of opening of the account and full balance of the account can be withdrawn at that time but if the marriage of the girl child happens prior the completion of such period of 21 years, the account can also be closed and full amount standing at the credit of the account can also be withdrawn at that time, provided that the girl child should be at least of 18 years.
While closing the account in reference to the first clause, the girl child is required to furnish the affidavit she is not less than 18 years of the age on the date of closing of account.
Here is a catch,
?Operation of the account shall not be permitted beyond the date of her marriage?.
The above statement in the notification means that on being the age of 18 years if girl gets married even before the 14 years of deposits are made, than no further deposits will be allowed.
In continuation of the above example, if my daughter gets married on 20th September 2024, the total number of deposits I would have deposited till that date will only be 9, but as my daughter gets married no further operation of the account is permitted.
2. The second rule stats that only girl child will be eligible to make the full withdrawal at the time of maturity. She will be required to furnish the pass book along with the requisition slip.
3. In simple words the third rule says that if the girl child gets married before the total number of deposits are made, but only 50% of the withdrawal are made, than the rest 50% will still fetch interest till the end of 21 years from the date of maturity.
Again as per my example, after 20th September, 2024, I will not be able to deposits any more amount into the account, but since I would have taken out only 50% of the account balance, the rest 50% will still be lying in the account and that 50% will earn interest till the maturity which will be on the date 31st March, 2029.