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The Sukanya Samriddhi Yojana (SSY) is a government-backed savings scheme launched by the Government of India as part of the Beti Bachao Beti Padhao initiative. Its primary objective is to encourage savings for the welfare of the girl child, ensuring her financial security and educational needs. As a vital part of India’s financial inclusion efforts, the Sukanya Samriddhi Yojana has garnered significant attention for its attractive interest rates, tax benefits, and the long-term financial support it provides to families with daughters.
This eBook is designed to provide UPSC aspirants with an in-depth understanding of the Sukanya Samriddhi Yojana, its key features, eligibility, benefits, and its role in the socio-economic development of the country.
The Sukanya Samriddhi Yojana was launched by Prime Minister Narendra Modi on January 22, 2015, with the vision of empowering and securing the future of the girl child in India. The scheme, which operates under the Ministry of Finance, was introduced to encourage parents to invest in the future of their daughters, focusing on their education, health, and overall welfare.
It is a small savings scheme specifically designed to provide a financial corpus that will help meet the expenses of a girl child’s education and marriage. The scheme ensures that the financial needs of a girl child are taken care of, particularly in a country where many families face economic barriers to education and healthcare for daughters.
Account Opening: The Sukanya Samriddhi Yojana account can be opened in any post office or authorized banks across India. A parent or guardian (mother or father) of a girl child can open an account in the name of their daughter. The account can be opened anytime between the birth of the child and the age of 10 years.
Deposit Amount: The minimum deposit required is ₹250, and the maximum deposit limit is ₹1.5 lakh per year. The amount can be deposited in lump sum or in instalments, either annually or monthly.
Interest Rate: The SSY offers an attractive interest rate, which is higher than most other small savings schemes. The rate of interest is subject to quarterly revisions by the government. As of the latest updates, the interest rate is 7.6% per annum, compounded annually. The interest earned is exempt from income tax under Section 80C of the Income Tax Act.
Tenure of the Scheme: The account has a tenure of 21 years from the date of opening, or until the girl child gets married after reaching the age of 18 years, whichever is earlier. However, the account can be extended further under certain conditions.
Partial Withdrawal: Partial withdrawal is allowed after the girl child attains the age of 18 years for educational purposes. A maximum of 50% of the balance at the end of the preceding financial year can be withdrawn for this purpose.
Maturity: The account matures after 21 years, or when the girl child reaches the age of 21 years, whichever comes first. After maturity, the account balance along with accumulated interest is paid to the account holder.
Age of the Girl Child: The scheme is available for any girl child who is below the age of 10 years at the time of account opening. This means that parents or guardians can open the account from the time their daughter is born up to her 10th birthday.
Number of Accounts: Only one account can be opened per girl child. In the case of twins or triplets, parents are allowed to open separate accounts for each child.
Parent or Guardian: The Sukanya Samriddhi Yojana account can be opened by a parent or legal guardian of the girl child. The scheme allows only one guardian to manage the account until the girl turns 18, after which she gains full control of the account.
Tax Benefits: The Sukanya Samriddhi Yojana offers attractive tax benefits. Deposits made into the SSY are eligible for tax deduction under Section 80C of the Income Tax Act, up to ₹1.5 lakh per year. The interest earned on the balance is tax-free, and the maturity amount is also exempt from tax.
High-Interest Rate: The interest rate offered by SSY is one of the highest among small savings schemes, making it an attractive option for long-term investment. The rate is revised every quarter by the government, ensuring that it remains competitive with inflation rates.
Secure Investment: As a government-backed scheme, the Sukanya Samriddhi Yojana is a low-risk investment option. The capital is guaranteed, and the interest rate is fixed, making it an ideal long-term savings tool for parents planning for their daughters’ future.
Encouragement for Female Education: The scheme encourages parents to save for their daughters’ education and welfare, which is aligned with India’s broader goal of improving female literacy and empowerment. The partial withdrawal provision for education provides much-needed financial assistance when the girl child reaches 18 years of age.
Safety and Flexibility: The Sukanya Samriddhi Yojana offers safety and flexibility to parents, as they can deposit money in the account as per their convenience. The option of partial withdrawals for educational purposes adds flexibility to the scheme.
Opening a Sukanya Samriddhi Yojana account is a simple and straightforward process. The following steps need to be followed:
Visit a Bank or Post Office: The account can be opened at any authorized post office or bank branches across India. A list of eligible banks and post offices can be found on the official websites of the respective banks.
Fill the Application Form: A prescribed form needs to be filled out for opening the SSY account. The form is available at the branches of authorized banks or post offices. The parent or guardian must fill in the details about the girl child, such as name, date of birth, and other required personal information.
Documents Required:
Deposit the Initial Amount: The minimum amount to open the account is ₹250. The deposit can be made in cash, cheque, or through online transfer (depending on the bank’s policies).
Obtain Passbook: Upon successful submission of the form and deposit, a passbook will be issued, which will track all the deposits, withdrawals, and interest earned on the account.
While the Sukanya Samriddhi Yojana offers a range of benefits, there are a few challenges and limitations to consider:
Restrictive Deposit Period: The maximum period for deposits is limited to 14 years. This can be a constraint for parents who want to continue contributing beyond this period.
No Premature Closure: The account cannot be closed prematurely except in specific cases such as the death of the account holder or if the girl child is physically disabled. This can be restrictive for individuals seeking greater liquidity in their investments.
Limited Withdrawal Options: While partial withdrawal for education is allowed after the age of 18, the scheme does not provide much flexibility for other financial needs until the maturity period.
The Sukanya Samriddhi Yojana plays a pivotal role in addressing some of the key issues faced by women in India, including:
Financial Empowerment of Women: By encouraging savings for the girl child, the scheme indirectly promotes women’s financial independence and empowers them to pursue higher education and career goals.
Improved Female Literacy and Education: The scheme helps reduce the financial burden of parents when it comes to educating their daughters, contributing to an increase in female literacy rates.
Support for Gender Equality: The initiative aligns with the government’s broader goals of promoting gender equality and ensuring that girls and women have access to equal opportunities, particularly in education.
The Sukanya Samriddhi Yojana is an impactful financial tool that plays a significant role in securing the future of a girl child in India. For UPSC aspirants, understanding the SSY’s key features, benefits, and its impact on social and economic development is essential for comprehending India’s socio-economic policies aimed at empowering women and ensuring financial inclusion.
The Sukanya Samriddhi Yojana not only serves as a robust investment option but also contributes to the larger national objective of fostering gender equality and ensuring a bright future for the next generation of girls in India.
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