Sukanya Samriddhi Account for NRI: All you need to know is a complete guide on this topic. Specifically, in this guide you will get answers for many of your questions like:
Can NRI open SSY?
What if it is opened prior to become NRI?
Action thereafter etc.
Let’s dive in right now.
Sukanya Samriddhi Account for NRI has been a frequently asked question by many out of curiosity certainly. Meanwhile, Non-resident Indians (NRIs) have always found a way to stay in touch with their native land.
Why NRIs are interested in the Sukanya Samriddhi Account?
Though they live far-off from their native land, by means of investment in India, they stay connected and feel to be a citizen of India. Specifically, the reason for showing interest by NRIs is :
(i)With adequate amounts also being available with them to invest they wish to save money for the girl child. Moreover, it helps in their girl child’s higher education and marriage.
(ii) Higher costs of higher education are one of the reasons. Therefore, they need to build a corpus to make their children study in a good college/university. Finally, a scheme like SSY may come as a savior.
(iii) Also, the other reason is that expenditure for marriage is exorbitant in foreign countries even. So, to mitigate this one has to plan for in advance. Ideally, NRIs think about what is working well in India also to apply the same without risking their money in market/equities.
(iv) The rate of interest in secured investments is as low as 2% in the USA/ any other foreign country. But, the Sukanya Samriddhi account offers a high rate of interest.
|Rank||America’s Best Savings Account Rates: 1st Quarter, 2020||2020 Q1 Avg APY|
|1st place||SFGI Direct||1.89%|
|2nd place||UFB Direct||1.89%|
|3rd place||Salem Five Direct||1.71%|
|5th place (tie)||American Express National Bank||1.70%|
|5th place (tie)||Marcus by Goldman Sachs||1.70%|
(v) So, Sukanya Samriddhi Yojana has become highly popular in India for the security of girl children’s prosperity. Moreover, their connection with the country makes them feel connected in terms of investment as well. Hence, NRIs feel that investment that works for Indians work for them too.
(vi) EEE-Tax benefits offered through Sukanya Samriddhi Yojana Account also attract them.
In particular, in the above context, NRI`s see it as a popular investment opportunity. Further, new opportunities have paved the way for people to explore unknown territories, moving away from the comfort of their home to rediscover themselves. Of course, Indians have been at the forefront of experimentation, finding places for themselves in different parts of the globe.
In fact, NRI always finds ways to stay connected to their motherland irrespective of the fact that they are far away from their country. So, even after being away from their native place, investments have become one of such ways to maintain a connection with homeland. As a result, creating a win-win situation for the individual and the country`s growth. For this reason, Sukanya Samriddhi Account for NRI has been in their mind from the time the scheme is launched.
What is sukanya samriddhi Yojana ?
It is a fact that the Sukanya Samriddhi Scheme is one such path that encourages the well-being of the girl child especially by contributing to her financial security. Further, the SSY account helps in fulfilling her educational and marriage needs.
On 23-07-2018, keeping view of the difficulty in participating in the poor in this account, Govt has taken a decision to reduce the initial deposit in particular for the opening of the Sukanya Samriddhi Yojana account from Rs1000 to Rs.250. Also, it has the highest compound interest rate for the April-June quarter in 2020 is 7.6%.
So, now let’s see the status of Sukanya Samriddhi Account for NRI.
Status of Sukanya Samriddhi Accounts for NRIs
Prime Minister Narendra Modi, has launched Sukanya Samriddhi Scheme with an aim to uplift the position of girls specifically in the country. Also, this scheme has prompted a lot of responses including the NRI community abroad. Of course, as per the rules and provisions on the subject as on date, NRIs are not eligible to open Sukanya Samriddhi account for their daughters.
Residential Status for SSY account
Firstly, the Sukanya Samriddhi Scheme is for the Resident Indian ONLY. So, an NRI is not eligible for opening the SSY account. Indeed, this restriction applies to the girl and guardian both. Sukanya Samriddhi Account is deemed to be closed once you become NRI. So, it is better to withdraw the balance of Sukanya Account if you are going to settle abroad. Once the parents of the girl child become an NRI, you have to go for premature closure of the SSY account. Then, you have to inform the post office within a month of becoming an NRI.
Can the Sukanya Samriddhi account be opened in the name of a girl child who is NRI?
You need to understand that a girl child who is a resident Indian citizen when (at the time of opening the account) you open an account is ONLY eligible for an SSY account. Further, it remains so until the maturity or the closure of the account. However, Non-resident Indians are not eligible for the opening of an SSY account. If you or your child’s residential status changes to non-resident or she takes up another country’s citizenship during the term of the scheme, no interest shall be payable from the date of becoming NRI.
What if a Sukanya Samriddhi account is already opened and subsequently becomes NRI?
Interest is not payable once the duration of the scheme is completed. In addition, interest is not payable if the girl becomes a Non-resident Indian (NRI) or a non-citizen. But, if the girl child becomes a non-citizen or a non-resident, the account will be deemed as closed. Also, You (guardian or the girl child) may have to inform any such change in status within one month from the change in status. Then, apply for closure of the account and withdraw the amount.
What if the Girl child passes away meanwhile?
In case the girl child passes away, the balance that is available in the account can be withdrawn by the guardian. However, the death certificate must be submitted.
In conclusion, You may see the SSY scheme extended to cover NRIs in the future considering the increased participation of the NRI community in Indian life and politics. This would depend on the government in power at that time and is currently nothing more than an assumption.
Finally, Sukanya Samriddhi Account for NRI is not permitted as of now.
In case if you have any doubts about the topic Sukanya Samriddhi Account for NRI, feel free to drop a comment.