All about Sukanya Samriddhi Yojana

In India, a girl child was considered a burden, especially in the rural sector.

Under PM Narendra Modis campaign Beti Bachao, Beti Padhao, the government launched the Sukanya Samriddhi Yojana to provide benefits to the girl child.

The main objective of this scheme is to provide financial support for the girl child to pursue her higher studies later on in life.

Benefits of the Sukanya Samriddhi Yojana Scheme

The scheme enables parents and guardians to save for the childs future education.

Loan requirements for further education reduces.

It stresses on the importance of education for the girl child.

It helps change the mindset that a girl is a burden on the family.

It makes parents and guardians aware of the benefits of planning ahead for the girl.

Investment in the account can be claimed for tax deduction under section 80C by the parent or guardian.

Interest earned on the deposit is tax free.

Investment

The account must be kept active by depositing a minimum of Rs.1,000 per year.

Above this, deposits can be made in multiples of Rs.100.

There is no limit on the number of deposits that can be made per year.

The maximum total deposits per year is capped at Rs.1.5 lakhs.

The investment will earn interest at the rate of 8.6% p.a.

The interest rates are linked to the yield provided by 10 year government bonds and will be revised annually at the discretion of the government.

Opening and Operation of the Account

The account must be opened by the parent or legal guardian of the child.

The account will be opened on submitting all required documents. A passbook will be provided in the name and date of birth of the child.

The parent or legal guardian will have authority to operate the account till the girl attains the age of 10.

Once the child is 10 years old, the rights of the account is transferred to her and she will become the primary holder.

From the date of opening, the account should be maintained with regular deposits for at least 14 years.

The maximum tenure of the account is 21 years.

Termination and Withdrawal

The account will be terminated on the following conditions:The childs marriage.

21 years of the account has been completed.

If 21 years of the account is completed and the girl is unmarried, the account can be kept active. The deposit will earn a specified rate of interest. The interest rate in this case has not been decided yet.

Upon attaining the age of 18, 50% of the deposit can be withdrawn for the purpose of higher studies.

Premature withdrawal is allowed in special cases for medical reasons, death of the child, or the parents are unable to carry forward with the scheme.

Eligibility

The account must be opened by the parent or legal guardian of the child.

The account must be opened before the child turns 10 years old.

The child must be a citizen of India, born in India.

Each family can open up to 2 accounts, one for each girl child.

In case of triplets, or if the second birth is twin girls, then the family can open up to 3 accounts.

Documents Required for the the Sukanya Samriddhi Yojana Scheme

Birth Certificate of the child

Proof of Identification - Any government-issued identity proof of the parent or guardian

Residential Proof - Any accepted address proof of the parent or guardian

Initial deposit in the form of cheque, demand draft or cash payment of Rs.1,000 minimum

Important Information on the Sukanya Samriddhi Yojana Scheme

If the holder fails to make the minimum yearly deposit, the account will be deemed as irregular. The account can be reactivated after paying a penalty of Rs.50 for every defaulted year, plus the missed deposits of Rs.1,000 for every defaulted year.

If the penalty is not paid before the deposit matures, then the entire deposit will receive interest at the rate of the post office savings account which is presently 4% p.a. Any excess interest already paid will be reversed.

The accounts can be opened at the key banks of the country and the Indian Post Offices. The banks include:Axis Bank

Oriental Bank of Commerce (OBC)

Bank of Maharashtra

Corporation Bank

Central Bank of India

Bank of Baroda

Indian Overseas Bank

Other scheduled banks

Contact Us

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