SUKANYA SAMRIDDHI YOJANA (SSY)- AT A GLANCE

Sukanya Samriddhi Yojana (SSY) is a small deposit scheme for the girl child launched as a part of the ‘Beti Bachao Beti Padhao’ campaign. 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 carefree marriage expenses of their child.

Provisions as per Sukanya Samriddhi Yojana Rules, 2006

1. Beneficiary of SSY will be any girl child, who is a resident Indian. Benefits will be available from the time of opening of account till the time of maturity or closure.

2. The account can be opened by parent or legal guardian of the girl child who has not attained the age of 10 years.
3. The account shall be operated by:

• • Guardian
  • Girl child, if she has attained the age of 10 years.

The account shall be compulsorily operated by the girl child after she has attained the      age of 18 years.

4. Only 1 account per girl child can be opened. Accounts can be opened for a maximum of two girl children in a family. Accounts for more than two girl children are allowed in case of more than two girls being   born in the first order of birth, or in a scenario of one girl child in the first order of birth, and twins or more than twins in the second order of birth

5. Account can be opened in post office or any branch of commercial banks.
6. Following documents are required to open an account

• • Birth certificate of the girl child
  • Identity and residential proof of the guardian
  • Medical certificate for proof of birth of multiple girl children on a single order of birth
  • Any other documents as required by the post office or banks.

7. The amount to be deposited in the account:

• • Minimum – Rs. 250
  • Maximum – Rs.1,50,000

In every financial year for upto 15 years

8. The amount can be deposited through cash, cheque, demand draft or online transfer.
9. Interest on account:

• • The rate of interest for the 4th quarter of FY 2018-19 i.e. 1 January 2019 to 31 March 2019 is 5%.
  • No interest is payable after the completion of tenure of the SSY, i.e. after 21 years from account opening.
  • No interest accrues after the girl child becomes a non-citizen or a non-resident of India.
  • The entire deposit in ‘Account under default’ (where a minimum amount of Rs 250 has not been deposited), which is not regularized 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.

10. Consequences of excess or short deposit:

• • Excess–  Any deposit above the maximum cap will not earn any interest and can be withdrawn anytime by the depositor
  • Shortage– Account shall be considered as ‘Account under default’ if no minimum deposit is made in a financial year, and can be regularized within 15 years of Account opening on payment of a penalty of Rs 50 per default year.

11. The account will remain operative for 21 years from the date of its opening or till the marriage of the girl after she turns 18.

Rules pertaining to closure of account

1. CLOSURE ON MATURITY:

Account matures after completion of tenure of 21 years and the balance in the SSA, including interest, is paid to the child on submitting an application and proof of identity, residence, and citizenship documents.

2. PREMATURE CLOSURE:

Premature closure is allowed in the following cases-

• • Reasons of intended marriage after a girl child attain the age of 18 years, an application can be submitted between one month prior to marriage and 3 months after marriage along with her age proof documents.
  • Death of the girl child on the production of the death certificate the balance in the SSA will be paid to the guardian.
  • Deemed closure in case of a change in the status of girl child i.e., girl child either becomes a non-resident or a non-citizen of India. Such a status change shall be communicated by the girl child or her guardian within one month of the status change.
  • After completion of 5 years from the opening of an SSA, if the post office or Bank is satisfied that the operation or the continuation of the SSA is causing undue hardship to the girl child (such as the death of the guardian, medical reasons of the girl child), the girl child or guardian may order for premature closure.
  • For any other reasons, if the SSA is to be closed anytime after the opening of this account, it will be permitted, but the entire deposit would only earn an interest rate applicable to post office savings bank.

3. WITHDRAWAL

• • This is allowed for purposes of higher education if the girl child has either attained 18 years or completed 10th standard of school, for meeting the actual fee or other charges required at the time of admission.
  • Documentary proof by way of a confirmed offer of admission in an educational institution, or a fee slip shall accompany the application for withdrawal.
  • Withdrawal has a maximum cap of 50% of the balance in the SSA at the end of the preceding financial year. This can be made in either one lump sum or in 5 installments

4. TRANSFER OF BALANCE OF 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.

Tax benefits provided to SSY

In order to encourage investments in SSY, the SSA has also been provided with certain tax benefits:

1. Investments made in the SSY scheme are eligible for deductions under Section 80C, subject to a maximum cap of Rs 1.5 lakhs.
2. The interest that accrues against this account which gets compounded annually is also exempt from tax.
3. The proceeds received upon maturity/withdrawal are also exempt from income tax.