Sukanya Samriddhi Yojana update: Check new rules on how to transfer account guardianship from grandparents to parents

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

These revised regulations, which will come into effect from October 1, 2024, are designed to address discrepancies related to the opening of accounts.

Under the Sukanya Samriddhi Yojana, a noteworthy revision in these guidelines focuses on accounts opened by grandparents for their granddaughters. According to the updated rules, accounts not opened by legal guardians or biological parents are now required to undergo a compulsory transfer of guardianship to align with the original provisions of the scheme. That means, the scheme now requires only the legal guardian or natural parent to open and manage these accounts.

The new guidelines noted:

> In case of accounts opened under the guardianship of grandparents (who are other than legal guardians), the guardianship shall be transferred to a person entitled under the law in force, that is, to the natural guardian (alive parents) or Legal Guardian.

> If more than two accounts are opened in a family in violation of Para 3 of Sukanya Samriddhi Account Scheme, 2019, then the irregular accounts shall be closed by treating it as an account opened in contravention to the scheme guidelines.

How to initiate the process?

Under the new rules, those who have opened Sukanya Samriddhi Accounts under the guardianship of grandparents, should now transfer it to their biological parents. Here’s how to go about it:

1. Documents need, forms and others

> Original Sukanya Samriddhi Account passbook: This contains all details of the account, starting from personal details to investment till date.

> Birth certificate of the girl child: Proof of age and relationship.

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

> Identification proof of new guardian: A government-issued ID of the parent or guardian.

2. How to transfer account guardianship:
 

• To begin the process of transferring guardianship of an account, first gather essential documents like ID proofs of the current account holders (grandparents) and the new guardians (parents).
• In addition, obtain any specific documents that might be requested by the bank or post office, such as 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.
• Complete the form diligently, ensuring all necessary fields are accurately filled out with details of both the grandparents (current guardians) and the parents (new guardians).
• It is vital that both the current account holders (grandparents) and the new guardians (parents) sign the transfer form for authorisation purposes.
• Once the form is filled and signed, submit it along with all supporting documents to the bank or post office staff.
• The staff will then assess the documents and proceed with processing your request efficiently.
• The financial institution, such as the bank or post office, will initiate a verification process to authenticate the transfer's legitimacy and ensure its security measures are upheld.
• Following the successful completion of the verification process, the transfer of guardianship will be officially formalised, leading to the updated inclusion of the new guardian's information within the account records for reference and future dealings.