Sukanya Samriddhi Yojana Scheme

Sukanya Samriddhi Yojana (SSY) is a small deposit scheme for the girl child launched as a part of the 'Beti Bachao Beti Padhao' campaign by the Government of India. Through the Sukanya Samriddhi Yojana scheme, the government incentivises savings made for one or more girl child by her parents. Contributions to a Sukanya Samriddhi Yojana account is eligible for tax deduction under Section 80C of the Income Tax Act and also earns an interest of 8.5%. In this article, we discuss the salient aspects of the Sukanya Samriddhi Yojana scheme.

Eligible Depositors

Not all parents are eligible for opening and depositing money under the Sukanya Samriddhi Yojana scheme. Only parents of a girl child who is ten years or younger at the time of opening of account are eligible to open a Sukanya Samriddhi Yojana account. Hence, a Sukanya Samriddhi Yojana account must be opened by the parents or Legal or natural Guardian in the name of the girl child before she attains the legal age of 10 years.

One Girl, One Account

Only one account can be opened for one girl child. Further, a parent or legal guardian is allowed to open Sukanya Samriddhi Yojana account only for a maximum of two girl children. A third account can be opened for a girl child only if twin girls are born in the second birth or if triplets are born in the first birth.

Opening a Sukanya Samriddhi Yojana Account

To open a Sukanya Samriddhi Yojana account, the following documents must be provided:

Birth certificate of the girl child
Address proof
Identity proof

A Sukanya Samriddhi Yojana account can be opened at the Post Office or in a Bank. Some of the Banks in India that provide the Sukanya Samriddhi Yojana accounts are listed below:

State Bank of India
Bank of Baroda
Punjab National Bank
Bank of India
Canara Bank
Andhra Bank
UCO Bank
Allahabad Bank
Corporation Bank

Sample Application Form

A sample Sukanya Samriddhi Yojana account opening form is attached below. Please refer to the concerned Post Office or Bank at the time of opening of the account. [pdf-embedder url="https://www.indiafilings.com/learn/wp-content/uploads/2018/03/Sukanya-Samriddhi-Yojana-Account-Opening-Form.pdf" title="Sukanya Samriddhi Yojana Account Opening Form"]

Interest Rate

The interest rate for Sukanya Samriddhi Yojana account is fixed by the Government of India each year as follows:

Year 2015-2016 - Interest rate of 9.2%.
Period 1.4.2016 to 30.9.2016 - Interest rates of 8.6.
Period 1.10.2016 to present - Government has declared an interest rate of 8.5%.

Deposits in Sukanya Samriddhi Yojana Account

An amount of Rs.1000 must be deposited at the time of opening the account and a minimum of Rs.1000 must be deposited each year for 14 years. Additional deposits can be made in the account in multiples of Rs 100, subject to the condition that the minimum amount deposited in the account for a financial year is Rs. 1000. The maximum amount of money that can be deposited in a Sukanya Samriddhi Yojana account is Rs.1.5 lakhs for each year. In case a minimum of Rs.1000 per year is not deposited, the account would be classified as an irregular account. An irregular account can be regularised on payment of a penalty of Rs.50 per year along with the minimum payment of Rs.1000 due each year, for the years in which the account was irregular until the account completes fourteen years.

Withdrawal from Sukanya Samriddhi Yojana Account

A Sukanya Samriddhi Yojana account will normally mature on completion of 21 years from the date of opening of the account. However, to meet the financial requirements of the account holder for the purpose of higher education and marriage, withdrawal up to 50% of the balance at the credit would be allowed after the girl child attains the age of eighteen years.
In case of marriage of the girl child before completion of 21 years from the date of opening of the account, the operation of the account will not be permitted beyond the date of her marriage. In such a scenario, the account holder would have to give an affidavit to the effect that she is not less than eighteen years of age as on the date of closing of the account.
Finally, on maturity, the balance including interest outstanding in the account will be paid to the girl child on the production of a withdrawal slip along with the passbook. If the amount is not withdrawn or closed after 21 years, interest will continue to accrue in the account till final closure.

Premature Closure

In the event of the death of the girl child, the account can be closed immediately on production of a death certificate. Any balance in the account would be paid to the parent or guardian along with interest till the month preceding the month of premature closure of the account. Also, if the Central Government is satisfied that operation or continuation of the account is causing undue hardship to the account holder, it can, by order, for reasons to be recorded in writing, allow pre-mature closure of the account only in cases of extreme compassionate grounds such as medical support in life-threatening diseases, death, and so on.

Sukanya Samriddhi Yojana Scheme Rules

The Sukanya Samriddhi Yojana Scheme Rules is reproduced below for ready reference: [pdf-embedder url="https://www.indiafilings.com/learn/wp-content/uploads/2018/03/Sukanya-Samriddhi-Yojana-Scheme-Rules.pdf" title="Sukanya Samriddhi Yojana Scheme Rules"]