As part of the Beti Bachao Beti Padhao Campaign, Prime Minister Narendra Modi launched a scheme called ‘Sukanya Samriddhi Yojana (SSY)’, the campaign literally translates to ‘Girl Child Prosperity Scheme’ in line with the above objectives.This article covers the Scheme in depth:
In order to majorly address the issue of the declining child sex ratio in our country, the Government of India launched a social campaign on January 22, 2015. The Beti Bachao Beti Padhao (BBBP) campaign sends the message ‘Save girls, educate the girl child’. This is a national initiative jointly run by the Ministry of Women and Child Development, the Ministry of Health and Family Welfare, and the Ministry of Human Resource Development.
BBBP aims at achieving the following:
(i) To stop gender discrimination of children and abolish the practice of sex determination.
(ii) To ensure the survival and protection of girls.
(iii) To ensure higher participation of girls in education and other areas.
1. What is the Sukanya Samriddhi Yojana (SSY)?
SSY aims at tackling a major problem associated with the girl child – education and marriage. It is focused on securing a bright future for the girl child in India by facilitating the parents of a girl child in building a fund for the proper education and a carefree marriage expenses of their child. SSY has introduced the Sukanya Samriddhi Account for this very purpose.
2. What are its rules?
|Particulars||Provisions as per the SSY Rules 2016|
|Who would be the beneficiary of the SSY account||Any girl child who is a resident Indian, from the time of opening the account, till the time of maturity/closure|
|Who can open the account?||Parents or legal guardian of a girl child who has not attained the age of 10 years, can open the account|
|Who can deposit and operate the account?||
|Number of accounts||
|Where can an SSA account be opened?||In any post office or authorized branch of commercial banks|
|Documents required to open the Account||
|When can an SSA account be opened?||Any time between the birth of the girl child till the time she attains the age of 10 years|
|Deposit threshold and tenure||
|Mode of Deposit||Through cash, cheque, demand draft or online transfer|
|Interest on deposits||
|Consequences of excess or short deposit||
|Tenure of SSA||21 years from the account opening date|
|Rules pertaining to the closure of SSA||Closure on maturity
|Transfer of balance of the SSA||Balance in the SSA can be transferred anywhere in India – from or to post offices, from or to banks, and between post offices and banks free of cost. This can be done upon furnishing of proof of change of residence of either the guardian or the girl child. Under any other circumstance, such a transfer can be made by paying a fee of Rs 100.|
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3. Sukanya Samriddhi Yojana interest rate
1. The rate of interest for the 1st quarter of FY 2020-2021 i.e. 1 April 2020 to 30 June 2020 has been kept unchanged to 7.6%.
2. The rate of interest for the 4th quarter of FY 2019-2020 i.e. 1 January 2020 to 31 March 2020 was 8.4%.
3. The entire deposit in ‘Account under default’ (where a minimum amount of Rs 250 has not been deposited), which is not regularised within the prescribed time, would earn interest on the post savings bank account; except if the default is due to the death of the guardian who opened the Account.
4. What are the tax benefits provided to SSY?In order to encourage investments in SSY, the SSA has also been provided with certain tax benefits:
- Investments made in the SSY scheme are eligible for deductions under Section 80C, subject to a maximum cap of Rs 1.5 lakhs
- The interest that accrues against this account which gets compounded annually is also exempt from tax
- . The proceeds received upon maturity/withdrawal are also exempt from income tax