Sukanya Samriddhi Scheme: Withdrawal, Maturity Rules Changed

Sukanya Samriddhi Scheme: Withdrawal, Maturity Rules Changed
The government has changed the withdrawal and maturity norms in the girl child savings scheme - Sukanya Samriddhi - through a notification dated March 18, 2016.  Launched last year,  Sukanya Samriddhi is a small savings scheme and is aimed at encouraging savings for a girl child's education and marriage.

Here are the some of the changes: 

1) Now, partial withdrawal up to 50 per cent of the account balance will be allowed for the purpose of higher education of the account holder (the girl child),  if she attains the age of eighteen years or has passed the tenth standard, whichever is earlier. Earlier, partial withdrawal was allowed only at 18 years for higher education. 

2) However, for the partial withdrawal, documentary proof in the form of offer of admission of the account holder in an educational institution or a fee-slip from such institution has to be submitted. 

3)  The partial withdrawal will be made as one lump sum or in instalments, not exceeding one per year, for a maximum of five years.

4) If the educational fee is less than 50 per cent of the account balance, the partial withdrawal amount will be restricted only to the fee amount. 

5) The Sukanya Samriddhi account will continue to mature on completion of a period of twenty one years from the date of its opening. But no interest shall be payable once the account completes twenty one years from the date of opening. Earlier, if the account was not closed after maturity, the balance was supposed to continue to earn interest.

6)  Premature closure of the account will continue to be allowed for marriage of the account holder, provided she is not less than eighteen years on the date of marriage.

7) According to the new norms, no such premature closure shall be allowed before one month of the date of the marriage or after three months from marriage. 

8)  Earlier rules stated that the account shall mature on completion of 21 years of date of opening or marriage of the account holder, whichever is earlier.

Highlights

  • Partial withdrawal norms for higher education eased
  • Partial withdrawal will be made as one lump sum or in instalments
  • No interest shall be payable once the account completes 21 years
More News