Introduction:
As part of the Beti Bachao Beti Padhao campaign, the Sukanya Samriddhi Yojana was launched with a noble mission.
The overarching goal of the Beti Bachao Beti Padhao initiative is to combat gender discrimination against children and eliminate the harmful practice of sex determination. It strives to ensure the survival and protection of girls and promote their increased participation in education and other vital areas.
In line with this mission, the Sukanya Samriddhi Yojana addresses a significant challenge faced by the girl child in India – education and marriage. This scheme is specifically designed to secure a promising future for young girls by providing a platform for parents to build a fund that can be utilized for their daughter’s education and marriage expenses, offering a comprehensive approach to their well-being and development.
What is Sukanya Samriddhi Yojana?
The Sukanya Samriddhi Yojana (SSY) is a small savings scheme initiated by the Ministry of Finance, explicitly designed for the benefit of female children.
Who is eligible for Sukanya Samriddhi Yojana?
- The Sukanya Samriddhi Yojana Account can be opened by a parent or legal guardian of a girl child up to the age of 10.
- The girl child must be a resident Indian.
- In a family, it is possible to open two SSY (Sukanya Samriddhi Yojana) accounts for two girls. However, a third SSY account can be opened in the special case of twin girls. This rule applies if you have already opened an SSY account for the first child and subsequently have twin girls. However, if you have already opened SSY accounts for twin girls and then have another girl child, you are not eligible to open an SSY account for that additional girl child.
How to open a Sukanya Samriddhi Account?
To open a Sukanya Samriddhi Account, follow the steps outlined below:
- Visit the nearest branch of an authorized bank or post office offering Sukanya Samriddhi Yojana.
- Fill out the application form for opening an SSY account.
- Submit the completed form along with all the required documents.
- Make the initial deposit, which ranges between ₹250 and ₹1,50,000
The bank or post office will verify the application form and payment details. If all the provided information is correct, an SSY account will be opened in your name.
Documents required for Sukanya Samriddhi Yojana:
The following documents are necessary to open an SSY (Sukanya Samriddhi Yojana) account.
- SSY account opening form
- The birth certificate of the girl child
- ID proof and address proof of the depositor
- In the case of multiple children born under one birth order, a medical certificate is required.
- Additional documents requested by the bank or post office should also be provided as per their requirements.
Operation of SSY Account:
The guardian operates the Sukanya Samriddhi Yojana Account until the account holder reaches the age of eighteen. After attaining the age of eighteen, the account holder can operate the account independently by submitting the required documents.
SSY Deposit Rules:
- The SSY account can be opened with a minimum initial deposit of ₹250, and subsequent deposits must be made in multiples of ₹50. However, it is required that a minimum deposit of ₹250 be made in the account each financial year.
- The total amount deposited in a Sukanya Samriddhi Yojana Account should not exceed ₹1,50,000 in a financial year. If a deposit exceeding ₹1,50,000 is accepted due to any accounting error, it will not be eligible for any interest and will be promptly returned to the depositor.
- Deposits can be made until the completion of 15 years from the date of inception of the account.
- If the minimum deposit of ₹250 is not made in an account during a financial year, the account will be treated as defaulted. A defaulted account can be revived before the completion of 15 years from the date of opening the account by paying a minimum of ₹250 plus ₹50 for each defaulted year.
- If the SSY account under default is not regularised within the specified time, the entire deposit, including the deposits made before the default date, will be eligible for interest equivalent to Post Office Savings Bank interest rate until the account is closed.
Sukanya Samriddhi Account Withdrawal Rules:
- Withdrawals can be made from the Sukanya Samriddhi Account once the girl child reaches the age of 18 or has passed the 10th standard.
- The maximum withdrawal limit from the SSY account is 50% of the balance available at the end of the preceding financial year.
- Withdrawals from the SSY account can be made either as a lump sum or in instalments. However, there is a maximum limit of one withdrawal per year, and the withdrawal period should not exceed five years. It’s important to note that the amount withdrawn should not exceed the specified limit or the actual fees and other charges.
Premature closure of SSY Account:
Premature closure is also allowed on extreme compassionate grounds, including:
- In the unfortunate event of the account holder’s demise, the applicable interest rate for the period from the date of death until the date of payment will be as per the prevailing rate of the Post Office Savings Account.
- Premature closure is also allowed on extreme compassionate grounds, including:
a) Life-threatening illness of the account holder
b) Death of the guardian who operated the account.
Comprehensive documentation and a duly filled application form are mandatory for such closures. The prescribed application form, along with the passbook, must be submitted at the respective Post Office or an Authorized Bank to initiate the premature closure process.
Closure upon maturity of SSY Account:
- The Sukanya Samriddhi Yojana Account can be closed after 21 years from the date of inception.
- Alternatively, the account can also be closed at the time of the girl child’s marriage after she attains the age of 18 years. This can be done one month before or three months after the date of marriage.
The account holder needs to submit a closure request, providing a declaration duly signed on a non-judicial stamp paper. The declaration should be attested by a notary and accompanied by proof of age, confirming that the applicant will be at least eighteen years old on the date of marriage.
Sukanya Samriddhi Yojana Rate of Interest:
- The account will earn interest at the prescribed rate notified by the Ministry of Finance on a quarterly basis.
- Interest will be calculated for the calendar month based on the lowest balance in the account between the close of the fifth day and the end of the month.
- Interest will be credited to the account at the end of each financial year.
- Interest will be credited to the account, where the account is active at the end of the financial year. (This is applicable if the account is transferred from bank to PO or vice versa)
- The interest earned is tax-free under the Income Tax Act.
The table below displays the historical data for interest rates on Sukanya Samriddhi Yojana.
| PERIOD | RATE OF INTEREST (%) |
|---|---|
| 03.12.2014 TO 31.03.2015 | 9.1 |
| 01.04.2015 TO 31.03.2016 | 9.2 |
| 01.04.2016 TO 30.09.2016 | 8.6 |
| 01.10.2016 TO 31.03.2017 | 8.5 |
| 01.04.2017 TO 30.06.2017 | 8.4 |
| 01.07.2017 TO 31.12.2017 | 8.3 |
| 01.01.2018 TO 30.09.2018 | 8.1 |
| 01.10.2018 TO 30.06.2019 | 8.5 |
| 01.07.2019 TO 31.03.2020 | 8.4 |
| 01.04.2020 TO 31.03.2023 | 7.6 |
| 01.04.2023 TO 31.12.2023 | 8.0 |
| 01.01.2024 TO 30.09.2024 | 8.2 |
Sukanya Samriddhi Yojana Calculator:
Numerous online calculators are accessible to assist you in estimating the maturity amount of the Sukanya Samriddhi Yojana. However, it is essential to note that these calculations provide only an approximate value, not an exact maturity amount.
The maturity amount is calculated based on the presumption that the prevailing interest rate will remain constant throughout the entire duration of the SSY account.
Sukanya Samriddhi Yojana Tax Benefits:
The following tax benefits are provided under the scheme.
- Contributions made towards the Sukanya Samriddhi Scheme are eligible for tax benefits under Section 80C of the Income Tax Act, 1961, up to a maximum of ₹1,50,000.
- The interest accrued on the account is also exempt from tax.
- Tax benefits are applicable to both the maturity amount and the withdrawal amount.
Banks authorized to open SSY Account:
Below mentioned banks have been authorized to open SSY accounts.
You can visit any of these banks to open an SSY account. The procedure for opening an account remains consistent across all the banks. Furthermore, regardless of the bank you choose to open your SSY account, the features, benefits, and interest rates are not influenced by the bank.
Difference between PPF and Sukanya Samriddhi Yojana:
Download Sukanya Samriddhi Yojana Form:
To apply for Sukanya Samriddhi Yojana, you need to download the application form online or get it directly from the Post Office. This form needs to be filled out and submitted at the Post office. Here is a quick link to the Sukanya Samriddhi Yojana Form:
https://www.indiapost.gov.in/VAS/DOP_PDFFiles/form/AccountopeningCertificate.pdf
Frequently Asked Questions:
When was Sukanya Samriddhi Yojana launched?
The Sukanya Samriddhi Yojana Scheme was launched on 22 January 2015 in Panipat, Haryana.
Is the Sukanya Samriddhi Yojana available nationwide in India?
Yes, the Sukanya Samriddhi Yojana is a central government scheme and is accessible in every state across the country.
Can the Sukanya Samriddhi Scheme be transferred to any location?
Yes, the Sukanya Samriddhi Scheme can be transferred from a post office to a bank or from one authorized bank to another. This flexibility is provided to accommodate situations where the girl child may need to relocate due to educational pursuits or other circumstances.
How many Sukanya Samriddhi Accounts can I open for my daughter?
Only one Sukanya Samriddhi Account is permitted per girl child. Therefore, if you have two daughters, you can open two separate accounts in each of their names. However, if you have only one daughter, you are eligible to open only one Sukanya Samriddhi Account for her.
What is the minimum annual deposit required for the Sukanya Samriddhi Scheme?
The minimum annual deposit amount required for the Sukanya Samriddhi Scheme is ₹250.
What is the maximum annual deposit amount allowed under the Sukanya Samriddhi Scheme?
The maximum annual deposit amount that can be made under the Sukanya Samriddhi Scheme is ₹1,50,000.
Can private sector banks open Sukanya Samriddhi Accounts for the public?
Yes, certain major private sector banks, such as ICICI and HDFC, have been authorized by the Finance Ministry to provide and manage the Sukanya Samriddhi Scheme for customers.
Is there any distinction between the Sukanya Samriddhi scheme offered by public and private banks?
No, there is no difference in the features and benefits of the scheme. Whether it is a private bank, a public bank, or a post office, all authorized entities provide the same set of features and benefits. This uniformity is maintained because Sukanya Samriddhi is a central government-driven scheme.
Will I receive a passbook for the Sukanya Samriddhi Yojana?
Yes, a passbook is provided to all Sukanya Samriddhi Scheme account holders. The passbook serves as a record of your transactions.
What are the details that are recorded in the passbook?
The passbook for an SSY account contains various important details, including:
• Date of opening the account
• Date of birth of the girl child
• Account number
• Name of the account holder
• Address of the account holder
• Deposited amounts
The passbook must be presented to the bank or post office during transactions such as depositing money into the account, receiving interest payments, and closing the account.
How to transfer Sukanya Samriddhi account from Post Office to Bank?
To transfer a Sukanya Samriddhi account from a post office to a bank, follow these steps:
• Visit the post office where the account is currently held.
• Inform the post office executive about your intention to transfer the account and submit a duly filled account transfer form.
• Submit the passbook and KYC (Know Your Customer) documents along with the transfer form.
• Upon the beneficiary’s request, the post office executive will discontinue the account.
• Visit the branch office of the bank where you wish to transfer the account.
• Submit all the required documents, including self-attested KYC documents.
After processing the transfer request, a new passbook will be provided by the bank.
Please note,
• The girl child beneficiary does not need to visit the post office for this process. The guardian can complete all formalities.
• The transfer of the SSY account within or between post offices and banks is free of cost.
• To transfer the Sukanya Samriddhi account, proof of a change in residence for either the beneficiary or the guardian is required.
• A transfer request due to any other circumstances will incur a fee of ₹100.
Is it possible to convert a regular bank deposit account into a Sukanya Samriddhi Account?
No, it is not currently possible to convert a normal bank deposit account into a Sukanya Samriddhi Account. The Sukanya Samriddhi Scheme is specifically designed to improve the financial well-being of girls in the country, and therefore, the conversion of accounts is not permitted.
Can I open an SSY account online?
Currently, there is no option to open an SSY account online. The account can only be opened by visiting an authorized bank or a post office in person.
Can I deposit deposit money in Sukanya Samriddhi Account online?
Yes. You can deposit money in Sukanya Samriddhi Account online.
How to deposit money in Sukanya Samriddhi Account online?
To make online payments for Sukanya Samriddhi Account, follow the steps below:
• Download the IPBB (India Post Payments Bank) app on your mobile phone.
• Transfer funds from your bank account to your IPBB account.
• Log in to your IPBB account and select ‘Sukanya Samriddhi Yojana’ from the “DOP Products” section.
• Enter your SSY account number and customer ID.
Once you have set up the payment schedule, IPBB will notify you. Each time a payment is transferred to your IPBB account, you will receive a notification regarding the transaction.
Can the interest rate on the Sukanya Samriddhi Scheme be revised?
Yes, the interest rate on the Sukanya Samriddhi Scheme can be revised. The Finance Ministry announces the interest rate at the beginning of each financial quarter, which means it may be revised periodically.
Can both parents avail tax deductions for the Sukanya Samriddhi deposit amount under section 80C?
No, only one of the parents or guardians is eligible to claim tax deductions under section 80C for the amount deposited in the Sukanya Samriddhi Account.
Can a person invest in both the Sukanya Samriddhi Scheme and PPF?
Yes, it is permissible to avail of both the Sukanya Samriddhi Yojana and PPF. The Sukanya Samriddhi Scheme primarily targets the financial well-being of girl children, while the PPF (Public Provident Fund) scheme is designed to facilitate retirement savings or long-term financial goals.
Since these schemes serve distinct financial purposes, individuals can invest in both simultaneously.
Is there a deadline to enrol in the Sukanya Samriddhi Scheme?
No, there is no specific deadline to avail the Sukanya Samriddhi Scheme. However, it’s important to note that the standard tax filing dates will still apply to the scheme for taxation purposes.
Conclusion:
To summarize, the Sukanya Samriddhi Yojana is an exceptional government initiative designed to empower and secure the future of girl children. The Sukanya Samriddhi Scheme offers a disciplined savings option with attractive interest rates, tax benefits, and flexible contributions, making it a powerful tool for parents to establish a solid financial base for their daughters. The Sukanya Samriddhi Scheme is created to take care of two primary goals for any girl child in India. i.e., education and marriage.
We hope you enjoyed reading this article. If you have any questions, please feel free to Contact Us. We will be more than happy to assist you with any concerns you may have.
Disclaimer:
This article provides general information only and does not constitute financial advice. Financial regulations, product terms, and industry guidelines are revised from time to time. While we have made efforts to ensure the accuracy of the information presented, we do not guarantee its completeness or accuracy. We disclaim any liability for loss or damage arising from actions taken based on the information provided in this article. To make informed financial decisions, please do your own research and consult with a qualified financial professional.
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