In 2011, the Indian national census results displayed wide distortion in the gender metrics. Child Sex Ratio (CSR) and Sex Ratio at Birth (SRB). The sex ratio which was 945 in 1999 declined to 927 in 2001. Furthermore, this number dropped to 918 in 2011. This means, for every 1000 boys, there were just 918 girls by 2011. These figures are clear indicators of gender discrimination and how male children are preferred over females. They spoke bitter truths about sex-selective abortions, post-birth abandonments and ruthless killings of girl children. The discrimination of girls by not providing them with good nutrition, education and other basic needs is a clear picture of socio-cultural preference for boys. This situation led to introduce many girls’ child schemes like Sukanya Samriddhi Yojna.
To address the concerns of gender discrimination, the government of India introduced the Beti Bachao, Beti Padhao (BBBP) scheme in 2015. This scheme aims to raise awareness among the country’s population against gender bias promoting equality of sexes and women empowerment. To improve the survival, representation and participation of a girl child, the Beti Bachao, Beti Padhao Yojna was jointly run by the Ministry of Women & Child Development (MoWCD), Ministry of Health & Family Welfare (MoH&FW) and Ministry of Human Resources Development (MoHRD). The BBBP Yojna’s three significant schemes are :
- Advocacy campaigns to address the declining CSR and SBR.
- Planning and implementation of multi-sectoral interventions to address the issue of gender differences.
- Sukanya Samriddhi scheme to encourage parents to invest and save funds for the education and/or marriage of a girl child.
The Sukanya Samriddhi scheme turned out to be the most successful scheme benefiting thousands of girls by funding their higher education and marriage. Here’s all you need to know about Sukanya Samriddhi Yojna.
Sukanya Samriddhi Yojana
On 22 January 2015 in Panipat, Haryana, honourable Prime Minister Narendra Modi launched the Sukanya Samriddhi yojna with an aim to secure the future of a girl child. The scheme allows the parents of a girl child to accumulate funds for her education and marriage so that a girl child is not seen as a mere liability anymore.
Who Can Avail Sukanya Samriddhi Yojana?
The Sukanya Samriddhi Yojna account must be opened in the name of a girl child alone. The account can be opened by the parents or legal guardians of the girl child, any time before the girl child turns 10 years old. Only one account is allowed per girl child and a maximum of two accounts can be opened for two girl children, beyond which, the scheme holds invalid. In the case of twin girls in the second birth or if three girls are born in a single birth, a third account can be opened after producing a medical certificate duly attested by the concerned authorities.
The account holder or the beneficiary should be an Indian citizen and must be residing in India at the time of opening the account. They should remain an Indian citizen until the maturity or closure of the account.
Where Can You Open a Sukanya Samriddhi Account?
Parents or guardians can open SSY accounts for their baby girls in any post office or in the branches of any commerical banks authorised by the Ministry of Finance. The main criteria is that the account should be opened any time between the birth of the baby girl and the age of 10 years.
What are the Features of Sukanya Samriddhi Yojana?
Sukanya Samriddhi Yojana comes with a host of attractive features that help parents secure the future of their girl child. The account can be opened with a minimum deposit amount of Rs. 250 per annum and the maximum deposit amount is Rs. 1,50,000 per annum. The amount can be deposited through cash, cheque, and demand drafts. If the minimum deposit of Rs.250 was not done in any financial year, the SSY account will be deactivated. However, it can be revived by paying a penalty of Rs. 50 along with the minimum deposit amount for that year. The account can be operated by the guardians until the girl child attains the age of 18 years. Once the girl child turns 18, she has to operate the SSY account herself.
The current interest rate is 8.1% p.a. and this value differs from year to year. This scheme comes with tax benefits under Section 80C of the Income Tax Act, 1961. The SSY scheme which is categorised under the Department of Revenue (DOR), is one of the prominent tax-saving schemes with Exempt-Exempt-Exempt (EEE) status. The compound interest that is accumulated on the deposit amount is entirely tax-free. Also, the maturity benefits received by the girl child are tax-free, that means, the amount that can be withdrawn after maturity is free of deductions.
The girl child upon whose name the account has been created can withdraw up to 50% of the balance once she attains 18 years of age. However, the account matures only after 21 years from the date of its creation or on the date of marriage of the girl child. On the other hand, the guardians can deposit the amount for a period of 15 years and irrespective of additional deposits after 15 years, the account shall earn interest compounded annually till maturity. Another impressive feature of SSY is that it provides options to withdraw money either in lump sum or in five installments as per the requirement.
What do you Need to Open a Sukanya Samriddhi Yojana Account?
If you are trying to open a new Sukanya Samriddhi account to secure your little girl’s future, then you will need the following documents handy:
- The birth certificate of the girl child.
- Proof of Identity of the parent/legal guardian i.e; any one of the PAN Card, Voter ID, Passport, Aadhaar Card, etc.
- Proof of address of the parent/legal guardian. Any one of the Voter ID, Passport, Aadhaar Card, Gas invoice, electricity bill, etc.
The above documents are to be submitted online or at any of the post offices or authorised banks along with the duly filled application form.
You can collect the SSY application form from any authorised banks or the nearest post offices. The SSY application form can also be downloaded from the official website of the Reserve Bank of India (RBI). After clearing the verification process, the SSY account is activated.
Steps to Open an SSY Account:
- Visit your nearest authorised bank or post office.
- Take the SSY application form which is known as FORM SSA-1. You can also download the form from the website of RBI.
- Fill out form and submit the necessary documents.
- Pay your first deposit- a minimum amount of Rs 250 to a maximum of Rs 1.5 lakhs.
- The bank or the post office takes a few days to process the application. After verification, your SSY account will be opened and you will receive a passbook.
A Sukanya Samriddhi Yojna application form asks for the following details:
- Name and details of the parents or legal guardian who is opening the account on behalf of the girl child.
- Name and date of birth of the girl child.
- The deposit amount.
- Cheque details or DD number (if applicable).
- KYC information such as the details of PAN Card, Aadhaar Card or Voter ID.
- Current and permanent address of the girl’s parents or the legal guardian.
Can you Pay for Sukanya Samriddhi Yojana Online?
Thanks to digitalisation, the SSY scheme allows deposits through online mode so that the depositors need not go to a physical place every time they want to deposit the amount. Here are the steps to be followed for the online payment of deposits:
- Download the Indian Post Payments Bank (IPPB) app.
- Transfer the money from your current bank account to your IPPB account.
- Now navigate to the ‘DOP Product’ section and click on the SSY account link.
- Now enter your SSY account number along with the customer ID of DOP.
- Select the amount you want to deposit to your SSY account as well as the duration.
- You will receive a confirmation that your payment is successful, and your payment routine will be set up.
General Questions about Sukanya Samriddhi Yojana
Q: The deposit is not made/Deposit is made below the minimum amount?
A: If you deposit below the minimum amount of Rs.250 in a financial year, then your account will be deemed to be inactive. To activate your account, you need to pay a fine of Rs.50.
Q: Excess Amount is Deposited?
A: No interest is generated for the deposit over and above the maximum limit i.e., Rs 1.5 lakh. You can withdraw the excess amount deposited at any time.
Rules to Withdraw the Amount Upon Maturity:
- After the maturity of the account, the girl child can withdraw the whole amount, including the interest, without any tax deductions.
- One should submit the withdrawal form along with documents such as identity and address proof.
Is a Pre-mature Closure of the SSY Account Possible?
- In the event of the death of the girl child, the depositors/parents/guardians can withdraw the account balance along with interest after producing the death certificate.
- In an event where the girl child is receiving treatment for a life-threatening illness, the account balance can be withdrawn along with interest after producing relevant proof of medical treatment.
- In order to meet expenses for higher education, you can withdraw the amount of Sukanya Samriddhi Yojna if your child reaches 18 years of age or has completed grade 10. Documents such as admission letters from college/university, and a copy of a few receipts must be submitted. However, the maximum amount that can be withdrawn is 50% of the amount available as of the previous year.
- If the money needs to be withdrawn to meet the marriage expenses of the girl child, a premature closure request is approved after submitting the age proof and other required documents.
- If the girl child moves to a foreign country and becomes an NRI, the SSY account is deemed closed by default. In such cases, for the withdrawal of funds, a request can be submitted by the guardians/depositors at the place where the account is held.
- In the event of the death of the depositor/guardian, the Sukanya Samriddhi Yojna account is either closed and the accumulated amount is given to the family or girl child or the account is kept active and running where the deposited amount continues to earn interest until the maturity period.
Can you Transfer the SSY Account?
Transferring an SSY account from one part of the country to the other is possible and hassle-free too. Just fill out the transfer request form at the concerned post office or bank and you are good to go. Keep in mind that the transfer is possible only as long as it is within the country, and NRI transfers are not permitted. Once the girl child moves out of the country and becomes an NRI, the account stands inoperative.
Thus, the Sukanya Samriddhi Yojana is an effective saving scheme by the government of India where one can create a sufficient amount by the end of a stipulated period. The investment is safe and has a surety of returns. In spite of inflationary pressures, SSY helps you financially support your daughter’s dreams. All you need to do is to ensure that your deposits are regular and consistent.
