Sukanya Samriddhi Yojana Scheme

In countries like India, women are still not a major part of the economy and have suffered long malpractice like dowry and declining sex ratio since independence. 

The central government has now taken the initiative to put things right and launched a Sukanya Samriddhi Yojana scheme under the flagship of the Beti Bachao Beti Padhao Campaign.

Prime minister Narendra Modi inaugurated this scheme on 22 Jan 2015 to motivate parents of a girl child and provide the girl with financial aid in their education or marriage. Under this saving scheme, the parent or guardian can open an account for their girl who is ten years or younger.

Eligibility Criteria to open SSY Account

The account can be opened by the parent or guardian of a ten-year-old or younger girl child. A girl can only have a single account under her name, and a family can own up to two accounts. However, there is an exception in the case of twins. For instance, there is the eldest daughter, followed by a twin. In this case, the third daughter is the youngest and can also have an account under SSY.

The document required:

• The photograph of a girl child
• The birth certificate of the applicant
• Pan card and Aadhar card of a parent or legal guardian
• Submission of Address proof of parent.
• For KYC verification applicant’s identity proof document

Interest Rate In Sukanya Samriddhi Yojana

The government decided the interest rate for the Sukanya yojana and reviewed it at the end of every quarter. The current rate for this saving scheme is 7.6% for FYI 2022. At first, the interest rate was set at 9.1 in 2015, which was later revised to 9.2 in the same year but was reduced to 8.6% for FYI 2016-17. As you can see, it varies with every quarter, so here is a detail of the interest rate.

How much money can you deposit in Sukanya Samriddhi Yojana?

Anybody with an initial deposit of INR 250 can open an account for their child. The deposit rule is that the minimum amount in a financial year can be INR 250, but the final amount at a single deposit or multiple occasions should not exceed INR 1.5 lakh.

One can deposit the scheme for 15 years from the date of opening. Sukanya Samraddhi yojana maturity period is of 21 years. To understand, take an example of a deposit under a girl’s age of 10 years should be made until she reaches the age of 25 years, and the amount will mature when she is 31 years.

Remember to pay all the deposits on time; otherwise, it will become a defaulted account from the regularised account. A person can take out money from a defaulted account by paying INR250 and INR 50 as late fees if the defaulted account has yet to make any payment. Then it will continue to earn interest till maturity on the minimum balance.

Application Process

• Sukanya Samriddh Yojana account can be opened at any public-private sector bank and the post office branch by the following method:
• Go to the bank or the Post office of your choice
• Ask for an application and fill in all necessary personal details.
• Attach verification id, Pan number, address proof, birth certificate, and passport-size photograph of a girl and the parent
• Pay the first deposit between Rs 250 to 1.5 lakh by the method of your choice(dd, cash, cheque)
• After the completion of the process your account will get activated and the passbook will be given in the name of the account holder.

How to open the Sukanya Samriddhi Yojana Scheme online?

You can not open a Sukanya Samriddhi Yojana account online because this facility is not available, you have to go to the bank or post office and submit the application for the SSY scheme for opening an account.

Benefits of Sukanya Samriddhi Yojana

You get the added benefit of tax exemption on the principal amount, interest rate on the amount, and benefit of maturity. All are tax-free.

Key pointers

• A girl child can manage her own account after reaching the age of 18 years, by submitting all the required documents to the bank or the post office.
• If the account holder is unable to pay even the least amount of Rs 250 on the due date then the account will automatically be termed as the default account
• A default account will earn the same interest till maturity on the last balance.
• A default account can be revived by paying late fees of “Rs 250+50” per year.
• SSY scheme is tax exempted.

Conclusion

While the government is trying to make a great effort to reduce the gap between males and females by launching schemes like the Sukanya samriddhi yojana, the work also needs to be done on the ground level can only happen by changing the mindset of people.

FAQs

1. What is the taxation process for the amount deposited under the Sukanya Samriddhi Scheme?

An amount under 1.5 lakh is exempted from any kind of tax, but any amount above it will be under section 80 C and will not be granted tax relaxation.

2. Can I withdraw money from my Sukanya Samriddhi account, prematurely?

No, you can only withdraw the amount up to 50 % only if the girl child has reached the age of 18 years.

3. Do private sector banks also have the authority to open Sukanya Samriddhi accounts for the public?

Yes, some leading banks like HDFC and ICICI have been allowed by the Finance Ministry to open and maintain SSY accounts.

4. Can both parents claim a tax deduction for the Sukanya Samriddhi Deposit amount under section 80C?

No only one parent can claim for an SSY Tax Deduction whose name was on the account .

5. Is the Sukanya Samriddhi Scheme transferable as per location?

Yes, you can transfer your SSY account from bank to post office, post office to bank, and bank to bank.