On 12th April 1917, Munshiram took sanyas in the presence of 20,000 witnesses. The ancient ceremony symbolized the final severance of the bonds of the old life. He performed his own funeral rites and shed the garments characteristic of mahatama Munshiram. The outward indication of the entrance into new state of life was the shaving of head and beard, the assumption of the ochre robe, and the acceptance of a new name. Munshiram expressed himself in his biography (p-451-452) on sanyas “it is faith (shraddha) that was the inspiration of the life I have led so far. Faith has always been the revered goddess of my life. Today also it is faith that has driven me to enter the state of sanyas. That is why, invoking as witness this sacrificial fire, I name Shraddhananda, so that I may succeed in filling my future life too with that same faith”

Normally the candidate named another sannyasi as his guru, who then conducted part of the ceremony, Munshiram declared god to be his guru, and performed all rites himself. He cut of all his ties with family, professional career, power structure of aryasamaj, personal property. As sannyasi he was totally free individual not answerable to any demands of the social or ritual power structures of Hinduism.