Sukanya Samriddhi Yojna

• 'Sukanya Samriddhi Yojna’ is a small deposit scheme for girl child, launched as a part of the ‘Beti Bachao Beti Padhao' campaign, which would fetch an attractive interest rate and provide income tax rebate.
• 'Sukanya Samriddhi Account' can be opened at any time from the birth of a girl child till she attains the age of 10 years, with a minimum deposit of Rs 250. A maximum of Rs 1.5 lakh can be deposited during a financial year.
• The account can be opened in any post office or authorised branches of commercial banks.
• The scheme primarily ensures equitable share to a girl child in resources and savings of a family in which she is generally discriminated as against a male child.
• In an effort to motivate parents to open an account in the name of a girl child and for her welfare to deposit maximum of their savings upto the prescribed limits, higher rates of interest is given on the deposits on annually compounded basis with income tax concession.
• The account will remain operative for 21 years from the date of opening of the account or marriage of the girl child after attaining 18 years of age.
• To meet the requirement of higher education expenses, partial withdrawal of 50 per cent of the balance would be allowed after the girl child has attended 18 years of age.
• The provision of not allowing withdrawal from the account till the age of 18 has been kept to prevent early marriage of girls.

Opening of Account

• The account may be opened by the natural or legal guardian in the name of a girl child from the birth of the girl child till she attains the age of ten years and any girl child, who had attained the age of ten years, one year prior to the commencement of these rules, shall also be eligible for opening of the account under these rules.
• A depositor may open and operate only one account in the name of a girl child under these rules.
• Birth certificate of a girl child in whose name the account is opened shall be submitted by the guardian at the time of opening of the account in post office or bank along with other documents relating to identity and residence proof of the depositor.
• Natural or legal guardian of a girl child shall be allowed to open the account for two girl children only:
• Provided that the natural or legal guardian of the girl child shall be allowed to open third account in the event of birth of twin girls as second birth or if the first birth itself results into three girl children, on production of a certificate to this effect from the competent medic al authorities where the birth of such twin or triple girl children takes place.

Deposits

• The account may be opened with an initial deposit of Rs 250 and thereafter any amount in multiple of one hundred rupees may be deposited subject to the condition that a minimum of Rs 250 shall be deposited in a financial year but the total money deposited in an account on a single occasion or on multiple occasions shall not exceed one lakh fifty thousand rupees in a financial year.
• Deposits in an account may be made till completion of fourteen years, from the date of opening of the account.
• An irregular account where minimum amount as specified in sub-rule (1) has not been deposited may be regularised on payment of a penalty of fifty rupees per year along with the said minimum specified subscription for the year (s) of default any time till the account completes fourteen years.

Mode of Deposit

The deposit in the account opened under these rules may be made

• in cash; or
• By cheque or demand draft drawn in favour of the postmaster of the concerned post office or the Manager of the concerned bank where the account stands and an endorsement on the back of such instrument shall be made and signed by the depositor indicating name of the account holder and account number in which the deposit is to be credited.

Where deposit is made by cheque or demand draft, the date of encashment of the cheque or demand draft shall be the date of credit to the account.

Interest on deposit

• On the basis of the decision of the Government, interest rates for small savings schemes including Sukanya Samriddhi Yojna are notified on quarterly basis since April, 2016. To check the latest interest rates, click here.
• Interest at the rate, to be notified by the Government, compounded yearly shall be credited to the account till the account completes fourteen years.
• In case of account holder opting for monthly interest, the same shall be calculated on the balance in the account on completed thousands, in the balance which shall be paid to the account holder and the remaining amount in fraction of thousand will continue to earn interest at the prevailing rate.

Operation of account

• The account shall be opened and operated by the natural or legal guardian of a girl child till the girl child in whose name the account has been opened, attains the age of 18 years.
• On attaining age of 18 years, the account holder that is the girl child may herself operate the account, however, deposit in the account may be made by the guardian or any other person or authority.

Premature closure of account

• In the event of death of the account holder, the account shall be closed immediately on production of death certificate issued by the competent authority, and the balance at the credit of the account shall be paid along with interest till the month preceding the month of premature closure of the account, to the guardian of the account holder.
• Where the Central Government is satisfied that operation or continuation of the account is causing undue hardship to the account holder, it may, by order, for reasons to be recorded in writing, allow pre-mature closure of the account only in cases of extreme compassionate grounds such as medical support in life- threatening diseases, death, etc.

Pass book

• On opening an account, the depositor shall be given a pass book bearing the date of birth of the girl child, date of opening of account, account number, name and address of the account holder and the amount deposited.
• The pass book shall be presented to the post office or bank, as the case may be, at the time of depositing money in the account and receiving payment of interest and also at the time of final closure of the account on maturity.

Transfer of account

• The account may be transferred anywhere in India if the girl child in whose name the account stands shifts to a place other than the city or locality where the account stands.

Withdrawal

• To meet the financial requirements of the account holder for the purpose of higher education and marriage, withdrawal up to fifty percent of the balance at the credit, at the end of preceding financial year shall be allowed.
• The withdrawal referred to in sub-rule (1) shall be allowed only when the account holder girl child attains the age of eighteen years.

Closure on maturity

• The account shall mature on completion of twenty-one years from the date of opening of the account:
• Provided that where the marriage of the account h older takes place before completion of such period of twenty-one years, the operation of the account shall not be permitted beyond the date of her marriage: Provided further that where the account is closed under the first proviso, the account holder shall have to give an affidavit to the effect that she is not less than eighteen years of age as on the date of closing of account.
• On maturity, the balance including interest outstanding in the account shall be payable to the account holder on production of withdrawal slip along with the pass book.
• If the account is not closed in accordance with the provisions of sub-rule (1), interest as per the provisions of rule 7 shall be payable on the balance in the account till final closure of the account

Source: National Savings Institute