Sukanya Samriddhi Account Yojana

Sukanya Samriddhi Yojana has been launched by the Government of India. This is a savings plan. To get the benefits under this scheme, the account has to be opened before the daughter attains the age of 10 years. The minimum investment limit in this account is ₹250 and the maximum limit is ₹1.5 lakh. This investment can be made for daughter’s higher education or marriage. Through this scheme, interest at the rate of 7.6% will be provided by the government on the investment. Apart from this, tax exemption will also be provided on investing under this scheme. This scheme is a small savings scheme launched by the Central Government. This scheme has been launched under the Beti Bachao Beti Padhao scheme.

In a gender-biased country like India where a female child is seen as a burden and liability on the family. The Sukanya Samriddhi Yojana is like a spell of rain which calms the mental turmoil of the parents/guardians, worrying about the future of their girl child. The Sukanya Samriddhi Yojana was launched as a part of the Beti Bachao, Beti Padhao campaign by the Modi government on 22 January 2015 after seeking the subjugating conditions of the girl children in the country. The scheme inspires the parents/guardians to accumulate funds in the Sukanya Samriddhi Yojana account from the time of the birth of their girl child for the purpose of their education and marriage.

The innovative Sukanya Samriddhi Yojana not only envisages the financial security for every girl child living in the Indian households but also contributes towards making them financially independent. With this scheme, the phrase ‘Boond boond se sagar bharta hai’ has got its true essence. Now, the parents are relieved as they will save little amounts of money as per their convenience for the future of their girl child and on maturity, they will have a good sum of money to give a nice future to her. So far, more than 76 lakhs people have benefitted from this scheme and have opened accounts worth Rs. 3,000 crores.

IPPB app has also been started by the post office. Through which the convenience of transactions will be provided to the customers. Through this app, money can be transferred online and money can be deposited in other post office schemes along with Sukanya Samriddhi Yojana. Through this app, digital account can be opened sitting at home. You must be 18 years old to open this digital account.

Sukanya Samriddhi Account can be opened in Post Office and Bank. Under Section 80C of the Income Tax Act 1961, a tax benefit of up to 1.5 lakh is provided under this scheme.

You are allowed to invest between Rs 250 and Rs 1.50 each year under this plan.  formerly, only two daughters’ accounts were 80C-exempt. However, the law has since changed, and now if two twin girls are conceived after one daughter, their accounts will also be free from taxes.

The interest rate under this scheme was earlier fixed at 8.4%, which has now been reduced to 7.6%. After the completion of this scheme or if the girl becomes an NRI or a non-citizen, then interest is not given in this situation. The interest rate is fixed by the government on a quarterly basis.

Sukanya Samriddhi Account Yojana: Features

1. Who will open this account?: A Sukanya Samriddhi Account can only be opened by the parent/legal guardian for a maximum of two female children. An exemption is provided by presenting a medical certificate from an authorized medical institution for twins and triplets.

2. Age Criteria: A Sukanya Samriddhi account can only be opened for a girl child anywhere between her birth and 10 years of age.

3. Residential status: This account can only be opened for a girl child who is a resident of India. This scheme is unavailable for a girl child having non-resident status. Even if the parents or the legal guardians are non-residents, then also this scheme will not be available to them.

If the girl child becomes a non-resident after opening this account, then this change should be intimated to the concerned post office/bank within 1 month of such change after which the account gets closed.

4. Account in the name of the girl child: Sukanya Samriddhi account must always be opened in the name of a girl child and not in the name of her parents or legal guardians. They will only deposit an amount in the account on behalf of the minor girl child.

5. Number of accounts: A single parent/legal guardian can open only one account for every girl child in the family. A maximum of two accounts for two girl children can be opened in one family.

6. Where to open this account: This account is opened in the authorized branches of Post Offices or commercial banks like State Bank of India, Bank of Baroda, Punjab National Bank, Bank of India, Canara Bank, Andhra Bank, UCO Bank, and Allahabad Bank, to name a few.

7. Documents required: There are certain documents required to open this account-

• Birth certificate of the girl child
• Address and identity proof of the depositor( parents or the legal guardians)-Aadhaar card, PAN card, passport, ration card, driving license.
• In case of twins or triplets, a medical certificate proving the order of birth of children.
• Certificate stating the nature of a relationship with the girl child. In cases where this account is opened by the biological parents of the girl child, the birth certificate will serve the requirement of this certificate. But in the case of the adopted girl child, this certificate becomes necessary.

8. Threshold of deposits: Sukanya Samriddhi account can be opened with a minimum deposit of Rs. 250 per account. A maximum limit on the amount of deposit to this account has been set at Rs.1.50 lakhs per account. There is no limit in the number of deposits in a month or a fiscal year.

9. Mode of payment of deposits: The cheque or the demand draft should be in the name of the-

• For Banks/Financial institutions- Concerned Bank Manager
• For Post Office-Concerned Postmaster

The parent or the guardian is required to write the girl child’s name and the account number on the back of the cheque or draft while making the payment of the deposit.

10. Account Transferability: The option to transfer the Sukanya Samriddhi Account from the post office to the post office, bank to bank, post office to the bank, and bank to post office on furnishing certain documents.

11. Penalty: A penalty of Rs.50 will be imposed if there is a failure in meeting the minimum deposit requirements.

12. Rate of Interest: The scheme is currently offering a rate of interest of 7.6% for 2022-23. This interest is compounded on yearly basis.

13. Maximum duration of deposit: The maximum duration for which a parent/guardian is required to deposit an amount in this account is 14 years. After the end of this duration, no more money is required to be deposited to this account and it will continue to accumulate interest until it matures/closed.

14. Closure of Account: In the first two scenarios, the account created under the Sukanya Samriddhi Yojana may be closed. This account may be terminated if the girl kid passes away or if the daughter’s home address changes. But as a result of the recent modification, the account holder’s life-threatening sickness is now also covered. Even after the passing of the parents, the Sukanya Samriddhi Scheme account might be immediately terminated.

15. Taxation aspects: The total maturity amount and the interest earned on this account are fully exempted from taxation under section 80C of the Income Tax Act 1961 and follow Exempt-Exempt-Exempt (EEE) tax regime. As of now, an amount up to Rs. 1.5 lakh is exempted.

16. Tenure of account: This savings account remains active for a maximum period of 21 years from the date of opening of this account, after which the account stops accruing any interest.

How to open this account?
The parents or the legal guardians of a girl child can open Sukanya Samriddhi Account in the government-approved  post offices or authorized branches of commercial banks. The procedure is easy and simple. It can be opened online as well through an offline method.

Transferability of Sukanya Samriddhi Account
The Sukanya Samriddhi Account can be easily transferred from one post office to another, from bank to another bank, or even from a post office to a bank as and when you require. The procedure is as follows:-

• Visit the bank or the post office where you are currently holding the Sukanya Samriddhi Account with your passbook and KYC documents. There is no need to take the girl child along with you until she herself is managing the account.
• Inform the post office or the bank branch about the transfer of your account.
• Write an application in the name of the postmaster or the bank manager stating the reason of transfer. This should contain the details of the account holder, the name and address of the bank/post office where the account is proposed to be transferred.
• Surrender your current passbook with the post office or the bank.
• After the verification, the account will the closed by the post office/bank and it will provide the depositor with the requisite documents including the demand draft with the account balance, required to be submitted with the new post office/bank.
• Then visit the new branch of post office/bank and submit these documents.
• A new passbook will be issued by the new post office/bank containing all the personal details of the depositor and the balance of amount from the last account.

Withdrawal Procedures
Usually the amount of this account can only be withdrawn after the maturity period of 21 years but there are certain provisions which allows the withdrawal of this deposit amount from this account before the expiry of this period.

Premature withdrawal: The money from the Sukanya Samriddhi Account can be withdrawn before the expiry of the maturity period of 21 years. Only the girl child is eligible to withdraw this amount from the account after attaining the age of 18 years. Only 50% of the amount is permitted to be withdrawn for the purpose of paying fees for the higher education, if the girl child is 18 years of age or has completed 10th standard and to get an admission in an educational institution. The account should have a deposit of at least 14 years or more.

When premature closure of account is allowed?

• Marriage of girl child: If the marriage of the girl child, for whom the account was opened, has been fixed by the parents/guardians after she turned 18, then the depositors are required to submit an application before one month of marriage or after three months of marriage with the age proof of the girl child.
  Death of girl child: The account gets closed if the girl child for whom the account was opened passes away. The parent/guardian is required to show her death certificate to the bank after which the account balance will be transferred.
• Girl child becomes NRI: If there is a change in the residential status of the girl child in relation to whom the account was opened, then this information should be communicated to the bank or post office wherever the account is held within one month.
• In cases of emergency: The account can also be closed by the bank or post office after the completion of five years if maintaining this account is causing a lot of trouble to the girl child due to situations like guardian or parent’s death or medical emergency.

Banks offering Sukanya Samriddhi Account Yojana