Are you eligible to proceed Sukanya Samriddhi Yojana after changing into NRI? As there is no such thing as a readability on this entrance, many NRIs are confused.
SSY or Sukanya Samriddhi Yojana is likely one of the finest debt devices launched by the federal government for a lady youngster. I’ve written varied posts on this. You may refer all of them –
Now on this submit, I cannot dwell a lot on the principles, rules, and options of SSY. As an alternative, I’ll think about the primary matter of this submit which is – Are you eligible to proceed Sukanya Samriddhi Yojana after changing into NRI?
Many traders are already conscious that an SSY account isn’t eligible for NRIs. Nevertheless, the confusion is whether or not one ought to shut the SSY account as soon as the standing of the lady youngster modifications to NRI or not.
Are you eligible to proceed Sukanya Samriddhi Yojana after changing into NRI?
Allow us to look into the 2016 notification and 2019 (the newest one) notification of SSY guidelines. The gazette notification dated 18th March 2016 has these traces. Notice that in SSY, beneficiary and account holder means a lady youngster.
“Beneficiary” means an eligible lady youngster who’s a resident Indian citizen on the time of opening of the account and stays so until the maturity or closure of the Account;
If, after the opening of an Account, the Account holder turns into a non-citizen or non-resident of India, intimation to this impact shall be given by the guardian or the Account holder to the submit workplace or the Financial institution involved, because the case could also be, inside a interval of 1 month from the date of such standing of the Account holder’s citizenship or resident standing.
It’s clear from this 2016 notification that when the lady youngster’s standing modifications from resident to non-resident, then you aren’t allowed to proceed the SSY account.
Nevertheless, the confusion began after the publication of the 2019 gazette notification on SSY (Notified vide G.S.R. 914(E) dated 12/12/2019 and additional amended vide G.S.R. 288(E) dated 05/05/2020) On this notification, the federal government was silent about what ought to traders do who opened the SSY and later became NRI.
Nevertheless, in a single such RTI reply, the Nationwide Financial savings Institute referred to the beneath traces to interpret the principles.
Referring to level 4, it’s talked about that even when the account holder turns into NRI, the SSY account will proceed to earn curiosity as normal as much as maturity. Nevertheless, level 5, which I wrongly interpreted earlier that it’s relevant to NRIs is incorrect. It refers back to the residents of India. Nevertheless, as per Indian regulation, a “Non-Resident Indian” (NRI) is taken into account a citizen of India, which means that regardless that they reside outdoors the nation, they nonetheless maintain Indian citizenship in keeping with the Citizenship Act, 1955; primarily, an NRI is an Indian citizen residing overseas.
I’ve yet one more proof to cross-check. It’s the Publish Workplace’s inside round, the place they talked about as beneath.
“On this connection, it’s clarified that if the account holder or guardian or each turns into NRI subsequently after opening the account below Nationwide (Small) Financial savings Schemes together with Sukanya Samriddhi Account in accordance with the provisions in Guidelines 4 (3) of Authorities Financial savings Promotion Normal Guidelines 2018 and accordingly, SSA account shall be operated until its maturity below the provisions of SSA Scheme 2019 if the account holder/guardian turns NRI.“
Right here, they’re referring to 2 notifications. One is from 2018 and one other is from 2019 (which I’ve referred to above). When you cautiously test the “Guidelines 4 (3) of Authorities Financial savings Promotion Normal Guidelines 2018”, then it’s really the identical which is offered within the RTI reply (Picture shared above).
“If a depositor in a single account, or any of the depositors in a joint account, or both the guardian of a minor or particular person of unsound thoughts or minor depositor, because the case could also be, subsequently turns into Non-resident Indian in the course of the interval the account is in operation, the account could also be continued until its maturity and the advantages obtainable to the depositor within the stated account shall be obtainable solely on non-repatriation foundation and the account shall not be allowed to be prolonged or continued past maturity, even when such extension or continuation is and in any other case permissible, and no curiosity shall be payable after the date of its maturity.“
By referring to all these notifications from 2014, 2019 (subsequent 2020 notification), the RTI reply of the Nationwide Financial savings Institute, and the Publish Workplace inside round, we are able to clearly conclude that if in the course of the account opening the standing of the lady youngster is resident and later her standing modifications into non-resident, then SSY account could be continued until maturity and such accounts are eligible to earn the relevant rates of interest.