How to Close Sukanya Account Or Post Office [Premature Closure of Sukanya Samriddhi Yojana] How to Claim SSY, Claim Form
Withdrawal or Premature Closure Rules for SSA. It is often seen that it is the girl child who is the most oppressed and marginalized part of society. Be it female infanticide, dowry death or honour killing, it is the girl who bears the brunt of the worst that society has to offer. Even in this day and age, the age of Digital India, girls are being denied education, being confined to the kitchen and made to perform household duties against their wishes. Another common story from many households is that in times of scarcity it is always the girl child who has to sacrifice her education and other interests in favour of her brothers so that they can fulfill their dreams, while she languishes alone with no one to hear her pleas.
It is true that times are changing for the better even though progress has been slow. However to speed up the process our Honourable Prime Minister had coined the slogan ‘Beti Bachao, Beti Padhao’ and to honour those inspirational words the Government has come up with the ‘Sukanya Samriddhi Account Yojana’ for the benefit of the girl child.
A Brief Overview
The Sukanya Samriddhi Account Deposit scheme aims to facilitate savings specifically for the girl child. When the parents of a girl child deposit money in a savings bank account under this scheme then that amount attracts a rate of interest which is much higher than what is applicable for normal saving banks account, which ranges from 4% to 6%. Also there are tax exemptions for the amount so deposited under this scheme. These act as an added incentive for the parents to adopt this scheme for their daughters.Please read here “sukanya samriddhi yojana interest rate.”
PREMATURE CLOSING RULES OF A SUKANYA SAMRIDDHI ACCOUNT
Sukanya Samriddhi Yojana in Case Of Death of Child
In the event of the untimely demise of an account holder, on production of a death certificate issued by a competent authority, the account shall be closed immediately and the guardian of the account holder shall be able to withdraw the amount lying in the account including interest credited upto the month preceding the month in which the account is closed.
The above notification has made it clear that under no circumstances can an account continue to be operational when the account holder is no longer alive. The amount lying in the account shall be released to the guardian of the account holder after said person furnishes the death certificate which has been issued by an approved authority.
The balance available to the guardian shall be the amount lying to the credit of the account at the end of the month preceding the month in which account is closed.
E.g. If the account is closed prematurely in February, in that case the amount lying in the account at the end of January shall be available to the guardian of the account holder.
In the instance where the operation of the account is causing undue hardship to the account holder and the same is proven to the satisfaction of the Central Government then, the government may for reasons, to be recorded in writing, make an exception on compassionate grounds such as death, medical treatment for life threatening disease etc. and allow the premature closure of the account.
If the account holder is in an extremely poor financial condition and is facing great difficulties, then on receiving an application in writing from the account holder, the government may allow the account holder to withdraw the amount prematurely. However it should be noted that this exception shall be made only in the rarest of cases and that the hardship should be genuine and demonstrable.
WITHDRAWAL RULES UNDER THE SUKANYA SAMRIDDHI YOJANA [How To Claim]
To meet the expenses that are incurred for the higher education of the account holder or for the purpose of her marriage, an amount equal to 50 percent of the balance available in the account can be withdrawn. This 50 percent is to be calculated on the available balance in the account at the end of the financial year which precedes the year in which such withdrawal is intended.
The aforementioned withdrawal shall only be allowed when the girl child i.e. the account holder becomes 18 years old.
The withdrawal of any amount before the maturity of the account under this scheme is not allowed. However it has been made clear by the notification that withdrawals can be allowed under special circumstances and subject to some conditions.
There are only two circumstances under which the withdrawal shall be allowed and they are:
Either, the amount can be withdrawn to meet the higher education expenses of the girl child once she has completed her schooling and sets her sights on a Bachelors or Masters degree or any other similarly recognized degrees.
Or, it can be used for the marriage of that girl child.
The amount on which 50 percent shall be calculated is the amount that is lying in the account at the end of the financial year which precedes the year in which the girl child turns 18 years old.
E.g. If the girl attains the age of 18 in January 2030, in that case half the amount that was lying in the account on 31.03.2029 shall be allowed to be withdrawn.
It should be noted that even if the mandatory deposit period of 14 years has not expired and the girl child attains the age of 18, withdrawal under this notification shall be allowed.
In conjunction to the above notification it has also been made clear that under no circumstances the amount will be allowed to be withdrawn until the girl child i.e. the account holder attains majority, i.e. the age of 18 years. In its own way this rule can potentially help curb child marriage by freezing the money until a girl attains majority.
CLOSURE RULE OF A SUKANYA SAMRIDDHI ACCOUNT ON MATURITY
Any account opened under this scheme shall mature on the completion of 21 years from the date of opening said account. However if the account holder gets married before the completion of 21 years then beyond the date of her marriage the account shall no longer be operational.
Further, before closing the account under the above mentioned clause the girl child is required to produce an affidavit stating that she is not underage i.e. less than 18 years old on the date of closing said account.
Under normal circumstances the account matures at the end of 21 years from the date of opening of the account. On that date the full balance including accumulated interest standing in the account can be withdrawn without any condition, however if the girl child gets married before the completion of the said period, in that case the full amount can be withdrawn and the account can be closed, provided the girl child is at the time of closure at least 18 years of age.
The girl child is required to produce an affidavit stating the same at the time of closure.
Also, what the notification means when it says that the account shall no longer be operable beyond the date on which the girl gets married is that, in the event that the girl child attains majority and gets married before the completion of a period of 14 years from the date of opening the account, then no further deposits shall be allowed in the account, even if the yearly deposits for 14 years which are otherwise compulsory under this scheme, have not been made.
The balance standing in the account on maturity shall be payable to the girl child who is the account holder, subject to the production of a withdrawal slip along with the pass book.
The notification reiterates that on maturity of the account, the girl child who is the account holder, is the sole person authorised to withdraw the balance standing in that account. To make this withdrawal the she will be required to produce the passbook along with the withdrawal slip.
If the account is not closed as per the above mentioned provisions, then interest as per rule 7 shall apply to the balance remaining in the account until maturity.
The notification simply means that if 50 percent of the amount is withdrawn for the purpose of the girl child’s marriage once she attains the age of eighteen but she does not choose to close the account, then in that case even if further deposits are not allowable, the balance amount remaining in the account shall continue earning interest till the time when the period of 21 years gets over and the account matures.
In Short of Withdrawal or Premature Closure Rules for SSA:
|50% of the total amount for the purpose higher education only||Must be 18 years of old||Account must be Active||Only on few conditions|
|Withdrawal of 100% amount can be done||No withdrawal before 18 years||Should be active||