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Sukanya Samriddhi Yojana: Ensuring Financial Security for the Girl Child

The Sukanya Samriddhi Yojana (SSY) is a government-backed savings scheme aimed at securing the financial future of girl children in India. Launched as part of the Beti Bachao Beti Padhao campaign, SSY encourages parents to save for their daughters' education and marriage expenses. This article outlines the key features of the scheme, eligibility criteria, deposit details, interest rates, account operation, and conditions for premature closure.

Key Features

(a) Who Can Open an Account:

• A parent or guardian can open an account in the name of a girl child under the age of 10.
• Only one account per girl child is allowed, which can be opened at a post office or any authorized bank in India.
• A maximum of two accounts per family is permitted, except in the case of twins/triplets where more than two accounts can be opened.

(b) Deposits:

• The account can be opened with a minimum initial deposit of ₹250.
• Thereafter, a minimum of ₹250 and a maximum of ₹1.50 lakh can be deposited annually, either in multiple installments or as a lump sum.
• Deposits can be made for a maximum of 15 years from the date of opening the account.
• If the minimum deposit is not made in a financial year, the account is considered a defaulted account.
• A defaulted account can be revived before the completion of 15 years from the date of opening by paying a penalty of ₹50 per year along with the minimum deposit for the years of default.
• Deposits are eligible for deduction under Section 80C of the Income Tax Act.

(c) Interest:

• The account earns interest at a rate notified by the government every quarter.
• Interest is calculated on the lowest balance between the close of the fifth day and the end of the month and is credited annually.
• The interest earned is tax-free under the Income Tax Act.

(d) Account Operation:

• The account is operated by the parent or guardian until the girl child reaches the age of 18.

(e) Withdrawal:

• Partial withdrawal is allowed after the girl turns 18 or passes the 10th grade, whichever is earlier.
• Up to 50% of the balance at the end of the previous financial year can be withdrawn for higher education or marriage.
• Withdrawals can be made in a lump sum or in installments, subject to a maximum of one withdrawal per year and a maximum of five years.

(f) Premature Closure:

• The account can be closed prematurely after five years under the following conditions:
  • In the event of the account holder's death.
  • On compassionate grounds such as life-threatening diseases of the account holder or death of the guardian.
• Necessary documents and applications must be submitted to the post office or bank where the account is held.

(g) Maturity:

• The account matures 21 years after opening or upon the marriage of the girl child after she turns 18, whichever is earlier.
• The account must be closed within one month before or three months after the date of marriage.

Conclusion