Sukanya Samriddhi Yojana (SSY) 2023

Last Updated on August 10, 2023 by Brajesh

Sukanya Samriddhi Yojana (SSY)

This news is based on a particular scheme called Sukanya Samriddhi Yojana (SSY), which is a part of the Beti Bachao Beti Padhao campaign. This is a unique campaign which can bring a revolution to the human society of ourTags country. Our respectable prime minister Narendra Modi launched this specific scheme. This campaign is all about a “Girl Child Prosperity Scheme” in line with the above objectives. Furthermore, it can be seen that this scheme was launched on 22nd January 2015 in Panipat, Haryana. In below table, a brief of this scheme is described, which indicates the interest rate, maturity value and duration of maturity.

Sukanya Samriddhi Yojana
Sukanya Samriddhi Yojana

Definition of Sukanya Samriddhi Yojana (SSY)

A proper scheme which particularly targets the female gender of our country, moreover this scheme focuses on securing a girl child’s future by facilitating savings for her higher education and marriage expenses. The scheme also indirectly addresses the issue of gender imbalance by encouraging parents to invest in their daughters’ future. This specific campaign called Beti Bachao Beti Padhao (BBBP) aims to get results the following:

  1. To prevent gender discrimination against children and abolish the practice of sex determination
  2. to make sure the survival and protection of girls
  3. to ensure high interest and participation of girls in education and other areas for their personal development

Details of the Sukanya Samriddhi Yojana (SSY)

Account opening: Parents or guardians can open an SSY account for a girl child who is below 10 years of age. A maximum of two accounts can be opened for two different girl children in a family.

Deposit period and maximum and minimum: The scheme has a tenure of 21 years or until the girl child gets married after turning 18, whichever is earlier. During this period, regular deposits are made to build a substantial corpus.  The minimum deposit for an SSY account is Rs. 250, however in multiples of Rs.50. and the maximum amount of deposit is Rs.1,50,000 in every financial year, up to 15 years. Cash, cheque, and online transfer are the ways to deposit money in this scheme.

Rate of interest: 1st quarter’s rate of interest is 8% per annum. The total deposit lies in ‘Account under default’ (where a minimum amount of Rs.250 per year has not been deposited), which is not regularised within a specific time, this would earn interest till the account gets matured. However, no interest is payable after the completion of tenure of the SSY. It can be stated that after 21 years from account opening, there will be no interest accrues after the girl child becomes a non-citizen or a non-resident of India.

Maturity period: The SSY account matures after 21 years from the date of opening of an account. At this point, the accumulated amount can be withdrawn, providing a substantial financial resource for the girl child’s future endeavours.

Benefits of SSY

  1. Easier payments: The minimum amount of deposit is Rs.250 per annum, which makes this scheme very affordable for poor people of our country.
  2. Educational expense: one can withdraw 50% of the account balance as of the earlier financial year’s end to meet the required educational expenses of a girl child. However, this can be availed by submitting proper proof of admission of the candidate.
  3. Returns and attractive rates of interest: The SSY offers an attractive interest rate that helps the deposited amount grow significantly over the years, thereby generating substantial wealth for the girl child’s future. Moreover, this particular scheme is government based so there is also a guarantee of returns.

Tax related benefits of SSY

There are also some tax benefits of this scheme which include, investments made in the SSY scheme are eligible for deductions under Section 80C, subject to a maximum cap of Rs 1.5 lakh. The interest that accrues against this account which gets compounded annually is also exempt from tax under Section 10 of the Income Tax Act.

Detailed interest of SSY 2023

The rate of interest for the 1st quarter of FY 2023-2024, which means 1 April 2023 to 31 June 2023, has increased to 8%. The rate of interest for the 4th quarter of FY 2022-2023, i.e. 1 January 2023 to 31 March 2023, was 7.6%. The rate of interest for the 1st quarter of FY 2022-2023 that is 1 April 2022 to 30 June 2022 was 7.6%.

Eligibility of SSY

There are some certain conditions of the SSY, which are the following

  1. Only parents or legal guardians of a girl child can open an SSY account
  2. The girl child must be a resident Indian and below the age of 10 at the time of opening the account.
  3. Only one account can be opened for a girl child.
  4. Only two SSY accounts can be opened by a family, that is one for each girl child.
  5. Sukanya Samriddhi Account can be opened for more than two girls in the below special cases:
  6. When a girl child is born before the birth of twin or triplet girls or if triplets are born at first, then a third account can be opened.
  7. When a girl child is born after the birth of twin or triplet girls, a third SSY account cannot be opened.

Process of opening a SSY account in a post office

There are some several steps which are required to be followed to open an account in a post office, which are as follows

  1. Visit the bank or post office branch where you would like to open the account.
  2. Fill up the application form 9Form-1) with relevant details and provide supporting documents.
  3. Pay the first deposit in the form of cash, cheque, or demand draft. The amount can be anything from Rs.250 up to Rs.1.5 lakh.
  4. The bank or post office will process your application and payment.
  5. Upon processing, your SSY account will be opened. A passbook will be issued for this account marking the initiation of the account.

Process of filling the SSY application form

There are also some distinctive steps which can be followed by the candidate to fill the application from of SSY scheme

  1. Under ‘To the Postmaster/Manager’, mention the Post Office/bank branch and postal address details.
  2. Paste the applicant(s) photograph to the right.
  3. Next to ‘I/We’, mention the applicant’s name and in the following space, mention Sukanya Samrddhi Yojana.
  4. Enter the deposit amount in number and words and tick the mode of payment, whether cash, cheque or DD. In the case of a cheque or DD, write down the number and date mentioned on it.
  5. Enter the name of depositor (i.e., name of the girl child) and date of birth
  6. Enter the name of guardian and date of birth, Aadhaar number and PAN number of the guardian
  7. Enter the address and contact details
  8. Mention the type of account and details of the birth certificate of the depositor
  9. Enter the details of KYC documents attached
  10. Put the signature with the name.
  11. Enter the nomination details.
  12. Get the signature of two witnesses if the applicant is illiterate.
  13. Further, add the date, place, and signature at the end of the nomination section.

Participated banks for the SSY scheme

It is required to visit these mentioned banks to open an account for the SSY scheme. The participated banks are

  1. State Bank of India
  2. Allahabad Bank
  3. Andhra Bank
  4. Punjab and Sind Bank
  5. Bank of Baroda
  6. Canara Bank
  7. Bank of India
  8. Bank of Maharashtra
  9. Corporation Bank
  10. Central Bank of India
  11. Indian Overseas Bank
  12. Dena Bank
  13. Indian Bank
  14. UCO Bank
  15. Syndicate Bank
  16. United Bank of India
  17. Punjab National Bank
  18. Union Bank of India
  19. Oriental Bank of Commerce
  20. IDBI Bank
  21. Vijaya Bank
  22. Axis Bank
  23. ICICI Bank

Required documents and process of online payment

  • The required documents are
  1. Birth certificate of the girl child
  2. Identity and address proof of the guardian
  3. Medical certificate for proof of birth of multiple girl children on a single order of birth
  4. Other KYC documents, such as Aadhaar card, Voters ID, etc.
  5. Any other documents as required by the post office or banks
  • Process of online payment
  1. Transfer money from your bank account to the IPPB account.
  2. On the IPPB app, go to DOP Products and choose the Sukanya Samriddhi Yojana account.
  3. Enter your SSY account number and the DOP customer ID.
  4. Choose the amount you would like to pay and the instalment duration.
  5. IPPB will notify you of the success of setting up the payment routine.
  6. Each time the app makes the money transfer, you will be notified of the same.

Withdrawal rule of SSY

There are some rules such as in order to claim or withdraw prematurely, marriage expenses or for the higher education of the girl child is required when she has attained 18 years. Furthermore, it can be seen that, withdrawal can be made from the account up to 50% of the balance available at the end of the previous financial year. Maximum amount of withdrawal can also be made in a year by in a lump sum or in 5 instalments.

Process of transferring SSY account from post office to the bank

Candidate must follow these several steps

  1. Visit the PO branch where the account is held. The girl child need not visit the PO branch as the guardian can complete the process.
  2. Inform the PO executive about your intent to transfer the SSY account.
  3. Submit the duly filled account transfer form, passbook, and KYC documents. The executive will discontinue the account on your request.
  4. Now, visit the bank branch where you would like to maintain the SSY account.
  5. Submit the self-attested KYC documents and any other paperwork provided to you by the PO executive while requesting to maintain the account with them.
  6. Once the bank executive processes your request, a new passbook will be provided.

Closure rules of SSY

There are some closure rules of this scheme which play an important role in the overall scheme. The closer on maturity states that the account matures after a girl child completes 21 years. The balance including the interest will be paid to the guardian. As for the premature closure Under certain exceptional circumstances such as the death of the account holder, serious medical conditions, or any other conditions as specified by the government, the account can be closed prematurely. However, in such cases, the interest rate applicable will be lower, similar to that of a savings account.

Conclusion

The Sukanya Samriddhi Yojana stands as a testament to the Indian government’s commitment to ensuring a bright and secure future for its girl children. By providing financial security, tax benefits, and promoting gender equality, SSY has made a significant impact on countless families across the nation. As more parents embrace this scheme, the landscape of opportunities for the girl child is set to transform, fostering a generation of empowered and educated young women who will contribute positively to the nation’s growth and development.

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