Investors in National Small Savings Schemes (NSS) should be aware that new rules will come into effect on October 1. The Finance Ministry’s Department of Economic Affairs recently issued new guidelines to regularise irregularly opened savings accounts under the NSS.
The guidelines have been categorised into the following sections:
Irregular National Savings Scheme (NSS) accounts
Public Provident Fund (PPF) accounts opened under a minor’s name
Holding multiple PPF accounts
Extension of a PPF account by a Non-Resident Indian (NRI)
Regularisation of Sukanya Samriddhi Account (SSA) initiated by grandparents instead of guardians.
These are the new rules for Sukanya Samriddhi Accounts (SSA) opened by grandparents, other than guardians:
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.
Documents required for Sukanya Samriddhi Yojana (SSY) account transfer from grandparents to parents
To transfer a SSY account from grandparents to parents, the following documents are required:
Original account passbook: This is essential as it contains all the necessary account details.
Girl child’s birth certificate: This serves as proof of age and confirms the relationship with the child.
Proof of relationship: Additional legal documents, such as the birth certificate, are needed to establish the relationship with the girl child.
New guardian’s identification Proof: A government-issued ID of the parent who will become the new guardian must be submitted.
Application form: This form, available at the post office or bank where the account is held, must be completed to initiate the transfer process.
Step-by-step guide to transfer account guardianship:
Collect all required documents, including identification proofs of the current account holders (grandparents) and the new guardians (parents).
Obtain any specific documents requested by the bank or post office, such as account details or a copy of the will or guardianship order (if applicable).
Go to the branch where the account was originally opened.
Ask for the transfer of guardianship form from the bank or post office.
Fill the form, ensuring all required fields are accurately filled out, including the details of both the grandparents (current guardians) and the parents (new guardians).
Make sure that both the current account holders (grandparents) and the new guardians (parents) sign the transfer form. This step is crucial for authorisation.
Submit the signed transfer form along with all the supporting documents to the bank or post office staff.
The staff will review the documents and process your request.
The bank or post office will conduct a verification process to confirm the validity of the transfer.
Once the verification is complete, the guardianship transfer will be finalised, and the new guardian’s details will be updated in the account records.
First Published: Sep 04 2024 | 11:48 AM IST
