Sunday, 22 March 2015

Sukanya Samriddhi Account (SSY) Pre-mature closure and Partial Withdrawal rules

Though the duration of the Sukanya Samriddhi Account is 21 years from the date of the opening of the account except for the case when the marriage of the account holder (girl child) takes place before the completion of those 21 years, then the account has to be closed.

Pre-mature closure of the account

There are two scenarios when the account can be closed prematurely

Untimely death of the account holder

In the unfortunate event of death of the account holder (girl child), the account shall be closed immediately on production of death certificate issued by the competent authority. In that case the balance at the credit of the account shall be paid along with the accrued interest till the month preceding the month of premature closure of the account, to the guardian of the account holder.

Hardship to the account holder

The other case when Sukanya Samriddhi Yojana account can be closed prematurely is when the central government is satisfied that operation of the account or continuation of the account is causing undue hardship to the account holder (guardian). Authorities may allow pre-mature closure of the SSY account only in cases of extreme compassionate grounds such as medical support in life threatening diseases, death etc. The application for pre-mature closure in this case has to be given with the proper reason.

Pre-mature withdrawal rules

Pre-mature withdrawal is permitted, to meet the financial requirements of the account holder for the purpose of -

  • Higher education
  • Marriage
In those two cases partial withdrawal up to fifty percent of the balance at the credit, at the end of preceding financial year shall be allowed. This partial withdrawal will be allowed only when the account holder girl child attains the age of eighteen years.

Let's clarify it with an example - If an account is opened for a girl child whose birth date is 10th Aug 2014 then her 18th birthday would be on Aug 10th 2032. Now if fifty percent withdrawal is requested then the sanctioned amount would be the fifty percent of the amount in the SSY account as of 31st march, 2032.

Points to note -

  • Pre-mature closure of the account is permitted in case of the death of the account holder or when it is causing extreme hardship to the depositor to carry on the operation of the account.
  • Partial withdrawal up to 50% is permitted in case of higher education or marriage of the girl child.
  • Partial withdrawal is allowed only when the account holder girl child attains the age of eighteen years.
  • After the marriage of the girl child SSY account has to be closed.

That's all for this topic Sukanya Samriddhi Account (SSY) Pre-mature closure and Partial Withdrawal rules. If you have any doubt or any suggestions to make please drop a comment. Thanks!


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