“Sukanya Samriddhi Account” Programme

Last Updated on January 20, 2017 by Bharat Saini

The government has launched the “Sukanya Samriddhi Account” programme-a small savings scheme, which carries the potential of having a far reaching effect on the lives and education  of young girls across India. The scheme which aims at education and marriage expenses for the girl children when they grow up and see their world makes it easy for   a parent or legal guardian to open an account in the name of the girl child. A parent or guardian can open only one account per girl child, and a maximum of two such bank accounts in the name of two girl children. However, three bank accounts can be opened in the name of three girl children only in case of twin girls as second birth, or if the birth of three girl children occurs at the very first birth itself. If both the parents of the girl child are dead, or are not capable of running the account due to financial crunch or some other reasons then legal guardian can perform the same task.  It is important to mention here that the girl child in whose name the account has been opened is fully entitled to operate the account on her after she attains the age of 18 years if she wishes to do so.

Under the laid down guidelines the account can be opened in any post office branch and designated public sector banks. It is noteworthy that Sukanya Samriddhi Yojana has been launched with the Beti Bachao, Beti Padhao scheme. Despite being a small investment scheme, Sukanya Samriddhi Account is wonderful initiative which may go a long way towards protecting the future of and providing financial security to the girl child.

Sukanya Samriddhi Account : A Promise of Security for the Girl Child  Union Government’s Sukanya Samriddhi Yojana under Beti Bachao Beti Padhao (BBBP) campaign has begun in Jaunpur district in the state of Uttar Pradesh. The first account under the scheme was opened in the name of a three-year old girl Vedika Tiwari in this district by her parents. This scheme encompasses all the girls of every economic strata under 10 years of age to open Sukanya Samriddhi Account in Post offices and in the Banks. This account will be opened by girls parents or legal guardians. A parent or guardian can open only one account per girl child, and a maximum of two such bank accounts in the name of two girl children. In case of twin girls as second birth, or if the first birth itself results in the birth of three girl children, three bank accounts can be opened in the name of three girl children. As per the government notification on the Scheme, the account can be opened in any post office branch and designated public sector banks. In the account, a minimum of one thousand Rupees and maximum of One lakh fifty thousand Rupees can be deposited annually, upon which interest of 9.1% will be accrued. When the girl child attains the age of 18 years, she herself would become eligible to operate the account. Under the scheme, the girl child can withdraw 50 per cent of the money after reaching age of 18 for higher education. The 18 years deadline will also help preventing child-marriages. Tax exemption is one of the greatest advantages of the Sukanya Samriddhi Account programme. The deposits made to the account, and also the proceeds and maturity amount would be fully exempted from tax under section 80C of the Income Tax Act.

There are certain features mentioned therein which makes this scheme unique. The minimum amount that is compulsorily required to be deposited every year is Rs. 1,000, and the maximum amount that can be deposited in a year is Rs. 1,50,000. An interest rate of an attractive 9.2 per that will accrue from deposit will be compounded annually. The account will only earn interest as per applicable rates after receiving/getting deposits up to 14 years from the date of opening of the same. So, it is compulsory that in order to make withdrawal the account must maintain a deposit of at least 14 years or more. The account will remain valid for 21 years from the date of opening. At the time of maturity the money will be paid to the account holder. It may be noted here that the account will close if the girl child gets married before the specified tenure of 21 years.