Nominations in Sukanya Samriddhi Account

The Sukanya Samriddhi Account Yojana Scheme is launched under ‘Beti Bachao, Beti Padhao’ campaign of Government of India to promote financial security of girl child and thus provide relief for the parents and guardians of the girl children.

All contributions made under the scheme are exempted under section 80C of Income Tax and this is one of the major benefits of the scheme.  Sukanya Samriddhi Account can be opened for any girl child below the age of 10 years by her legal guardian or parents and the account would mature in 21 years or at the time of marriage or higher education of the girl child, whichever is earlier.

At the time of opening the account, no many documents are required.  Any guardian or parent of the girl child can walk up to any post offices or authorized banks with basic documents of identity and residence proof and get the account opened.

There could be no nominations for the account, however, the nominee is required in case of death of the girl child before maturity of the account.  In case of girl child living, the maturity benefits would be given directly to the girl child.

In case of death of the girl child, following two cases would apply:

  • The account should be deactivated and closed immediately
  • At the time of death of the girl child, the balance amount together with the interest accrued on the account would be handed over to the parent or the legal guardian of the girl child.

There could be situations wherein the depositor or the parent or legal guardian of the account dies in the middle of the term.  Under such a situation, the following possibilities would apply:

  1. The total amount accumulated in the account would be transferred to the girl child or her family
  2. In another condition, the accumulated amount could be kept in the account without closing the account and it would keep growing in the account with the same interest rates without any fresh contributions. In this case also, the maturity amount would be given to the girl child after the end of the term.

It is noteworthy to mention here that premature withdrawal of the account is not permissible under the scheme, until the money has to be used for marriage of the account holder or for her higher education.

The account can also be closed in conditions of death of the account holder or the depositor or in situations where the functioning of the account is causing undue inconvenience to the depositor.  Such special conditions are to be backed with specific documents verifying the actual conditions.

Since the scheme is a fairly new scheme and not many banks have started opening up the account, the processes and procedures are yet to be seen in a clearer picture.  As of now, some of the authorized banks too are not really sure of the micro-details of the scheme.

For better information on the Sukanya Samriddhi scheme, it is also advisable to visit the bank and talk to the authorized personnel.

Other Important Articles to Read

  1. Sukanya Samriddhi Yojana Vs PPF
  2. Documents Required in Sukanya Samriddhi Yojana

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