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Sukanya Samridhi Yojana

The Gender Inequality has always been the topmost issue to happen in India. Everywhere, the scenario of gender inequality is seen. Starting from giving birth to getting married. The women are not treated equally and not given respect. Keeping this thing in mind and providing women to live a respectful life the Government has launched a special scheme for the females of our country. This Scheme is called as Sukanya Samridhi Yojana.

The Sukanya Samridhi Yojana is the most popular Government Scheme launched by the Prime Minister of India, Shri Narendra Modi on 22nd January 2015, Panipat Haryana. It is a small deposit scheme which is specially meant for the “Girl Child”. It is a part of “Beti Bachao, Beti Padhao Campaign.


Objective of this Sukanya Samridhi Yojana

The main objective of the scheme is to provide a better future to the girl child. Starting from the education to the marriage of a girl. It focuses to give the best of the benefits in the field of education, hygiene, and security. Its aim is to provide a higher education and fulfill the wedding expenses. This scheme has been successfully marching towards the development of the society providing a financial security and financial dependence to the women. The scheme encourages the parents and the guardians to shape the future of their girl child.

About The Sukanya Samridhi Yojana

  • Initially, the interest rate was 9.1% which later revised to 9.2% in late March 2015.
  • The scheme provides an interest rate of 8.3% currently (starting from July 2017-October 2017) along with the tax benefits.
  • You can open the account in either Post Office or any other authorized commercial banks.
  • The minimum deposit amount is Rs 1000 annually. The maximum deposit amount limit is Rs 150,000. If the minimum deposit is not made in a year then a fine of Rs 50/- is charged.
  • The girl can be able to operate her account when she reaches the age 10. The account allows withdrawing 50% of the amount of deposit at the age of 18 for her higher education purposes.
  • The account reaches to a maturity level after a time period of 21 years from the date of opening it.
  • The Deposits are done for the first 14 years, after this period the account will earn the only applicable rate of interest.
  • If you have closed your account, then you will stop earning interest at the prevailing rate.
  • If the girl is over 18 and is married then a normal closure is allowed.

How to Open A Sukanya Samridhi Account?

You can open your Sukanya Samridhi Account either in Post Office or any Commercialised Banks. The Post Offices in India have a huge visibility, especially in the rural areas. Thus the post offices are the best platform for opening small saving schemes. The Sukanya Samridhi Yojana can also be availed in many such post offices across all over India.

The scheme account can also be opened at any of the public or private authorized banks in the country. A form is available at any of these places. Fill the form and submit it with the other relevant documents. The bank will now verify the filled details on the form and tally the documents and approve the account opening. The Sukanya Samridhi Account comes from the Ministry of Finance which aims at uplifting the financial status of the woman and guide them in their education and development.

Eligibility Criteria of the Sukanya Samridhi Yojana

To be a part of the Sukanya Samridhi Account one has to pass the eligibility criteria of the scheme. The following are the eligibility criteria of the scheme

  • The Scheme can be available if the girl crosses the age of 10.
  • As a grace period, if a girl is born in the year 2nd February 2003- 1st December 2015 then she is eligible to obtain an account under the scheme.

Documents Required For the Sukanya Samridhi Yojana

A certain stack of documents is required for opening an account under this scheme. The documents that are required

  • Sukanya Samridhi Account Application Form
  • Birth Certificate of the Girl Child (beneficiary account)
  • Identity Proof of the Depositor (Parent or the legal guardian). This includes either one of the following- PAN Card, Aadhaar Card, Driving License, Passport etc.
  • Address Proof such as Ration Card, Telephone Bill, Electricity Bill etc.

Tax Benefits

The Sukanya Samridhi Yojana is completely a tax-free scheme. The Tax Benefits that are provided

Exemption on Contribution

At the time of launch, only the deposits in the account were eligible for the tax deduction under 80 C of the Income Tax Act which is Rs 1,50,000/- in 2015-2016. Later, the Finance Minister announced that the tax exemption on the interest from the account and from the withdrawal from the fund after the maturity, making the tax benefits similar to that of Public Provident Fund. These changes were applied from 1st April 2015.

The interest earned on the deposited amount will also be tax-free. Thus, there’s no need to add the income interest earned in the income of the guardian.

Exemption on The Maturity Amount

Both the maturity amount receivable at the end of the 21 years and 50% of the with the drawable amount at the end of 18 years of the girl child for her marriage or higher education will be tax-free.

Withdrawal Procedures

Opening An Account (0-10 years)– A Sukanya Samridhi Account can be opened in the name of the girl (beneficiary) who is below 10 years, as of the date of opening an account. Therefore the proof of birth document is essential. You can open a maximum of 2 accounts for two girls in a family. One cannot open two accounts for one girl.

Withdrawal After 5 years– This is the first premature closure of an SSY account which can be done after the completion of 5 years of the account opening. This withdrawal can be used for the medical purposes, curing life threatening diseases. If you are planning to close your account, you can but the entire deposit will only receive the interest of a Post Office Savings Bank Account.

Withdrawal After 10 years– When the girl crosses the age of 10 then she can operate the account by herself. She can make the future contributions into her account. The parents can also deposit in the account.

Withdrawal After 15 Years–  For accessing the account the minimum deposit amount is Rs 1000 annually. The maximum deposit amount limit is Rs 150,000. If the minimum deposit is not made in a year then a fine of Rs 50/- is charged. To keep your account active you need to keep depositing for the initial 15 years. For a 9-year-old, deposits have to continue till the child turns 24. Between the age of 24-30 years, the account earns interest on the balance.

Withdrawal After 18 years– This is the next withdrawal procedure when the girl turns 18 years of age. The funds collected here are for her needs, not for other purposes. A maximum of 50% of her account balance can be withdrawn for completing her higher studies.

Withdrawal After 21 Years– Thus, the SSY account has a complete cycle of 21 years of working from the date of its opening. Like for an example if a girl’s account is opened at the age of 9 years then the cycle of the account ends at the age of 30. The withdrawal purpose is mainly for the marriage purpose.

NRI Girl Child– The Non-Resident Indians are not eligible for the Sukanya Samridhi Scheme. They cannot open the account for their daughters.

Sukanya Samridhi Yojana is a good scheme started by the Government of India with a good motto of thinking about the wellness and future of the women who are always given a back seat for every situation. This scheme is a long-term investment which relies more on the equity help. The Government has taken a good step, and this would go a long way and be an inspiration for all of us.

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