Sukanya Samriddhi Yojana update: Check new rules for transfer of account guardianship from grandparents to parents

Sukanya Samriddhi Accounts: Investors in small savings schemes should note that new rules will apply to some of these schemes from October 1, 2024. Last month, the Department of Economic Affairs (DEA) said the new guidelines have been introduced to standardise the process of regularising irregularly opened savings accounts within the National Small Savings Schemes (NSS), including the Sukanya Samriddhi Yojana (SSY), Public Provident Fund.

These revised rules, which will come into force on October 1, 2024, aim to resolve inconsistencies related to account opening.

Under the Sukanya Samriddhi Yojana, a notable revision to these guidelines focuses on accounts opened by grandparents for their granddaughters. Under the updated rules, accounts opened by anyone other than legal guardians or biological parents will now have to undergo a mandatory transfer of guardianship to comply with the original provisions of the scheme. This means that the scheme now only requires that the accounts be opened and maintained by the legal guardian or biological parent.

The new guidelines state:

> For accounts opened under the guardianship of grandparents (who are not the legal guardians), the guardianship is transferred to a person entitled under applicable law, i.e. the natural guardian (living parents) or the legal guardian.

> If more than two accounts are opened in a family in violation of clause 3 of the Sukanya Samriddhi Account Scheme, 2019, the irregular accounts will be closed by treating them as accounts opened in violation of the rules of the scheme.

How do you initiate the process?

As per the new rules, those who have opened Sukanya Samriddhi accounts under the guardianship of their grandparents will now have to transfer them to their biological parents. Here is how to do it:

1. Required documents, forms and other

> Original Sukanya Samriddhi Account Passbook: This contains all the details of the account starting from personal information to past investments.

> Birth certificate of the girl: proof of age and relationship.

> Proof of relationship with the girl: Documents such as birth certificate or other legal documents proving the relationship.

> Proof of identity of the new guardian: An official ID card of the parent or guardian.

2. How to transfer account management:

• To begin the process of transferring guardianship of an account, first gather important documents such as identification cards from the current account holder (grandparents) and the new guardian (parents).
• Also, obtain any special documents that the bank or post office may require, such as bank account details or a copy of the will or guardianship order (if applicable).
• Visit the branch where the account was originally opened and request the transfer of guardianship form from the bank or post office.
• Fill out the form carefully, making sure to fill in all required fields with accurate information about the grandparents (current guardians) and parents (new guardians).
• It is important that both the current account holder (grandparents) and the new guardian (parents) sign the transfer form as authorization.
• Once the form is completed and signed, submit it along with all supporting documents to the bank or post office staff.
• The staff will then review the documents and process your request efficiently.
• The financial institution, such as a bank or post office, initiates a verification process to confirm the legitimacy of the transfer and ensure that security measures are followed.
• Upon successful completion of the verification process, the transfer of guardianship is officially formalized, resulting in the updated inclusion of the new guardian's information in the account records for reference and future business.