Of the numerous social elevation schemes that the current government at center has floated for various sections of the society, Sukanya Samriddhi Yojana is said to be quite a noble and relevant one for protecting the rights of girl child in the country. The fate of girl child is not very decent in many rural districts in India with more or less the same state being in every part of the country. It is high time that such schemes are brought into the foray and implemented in the best possible way to see better practical results.
The Sukanya Samriddhi Yojana was launched in January 2015 by Honorable Prime Minister, Sh. Narendra Modi under the ‘Beti Bachao – Beti Padhao’ initiative of Government of India. Inspite of so many efforts by the Indian government, sex ratio and the fate of girl child in India remains a challenge across the country. It is quite commendable that such move has been made by the government to restore the life and dignity of girls in India and change the common mind set of people.
It is however; quite surprising and disappointing that many financial analysts are comparing Sukanya Samriddhi Yojana with contemporary financial schemes. In fact, this scheme is much beyond financial analysis. It has a social motive in its core and should be seen like that only.
Sukanya Samriddhi Yojana Advantages and Benefits
Having a girl child in India is considered to be a big responsibility for the parents and guardians. This perception is due to the fact that in order to marry a girl there are lots of hardships like dowry associated and thus having a girl child becomes a kind of burden on the parents. This is probably one reason for increasing female feticide and imbalanced sex ration in rural parts of India.
If the government has to maintain a balanced sex ratio, has to promote the well being of girl child and secure their future by assisting parents of the girl in every possible way. The objective of Sukanya Samriddhi Yojana is simple – to help parents secure future of their daughters. What makes this scheme more attractive and reliable is that it offers the highest interest rates on the deposits. Below mentioned are some of the much talked benefits of Sukanya Samriddhi Yojana.
- Highest Interest Rate in Sukanya Samriddhi Yojana among all other saving schemes
One of the most prominent features of Sukanya Samriddhi Account Scheme is that if offers an interest rate of 9.2 per cent for current fiscal year 2014-15, that is supposed to be quite higher as compared to all other saving schemes in the country. The rate of interest for this scheme is linked to the floating market and would vary every year. However, we expect that the rate of interest for these accounts would be best in the market, as declared for the government of India every year
Comparison of Sukanya Samriddhi Yojana with other Popular Savings Scheme
|Schemes||Rate of Interest FY 2014-15|
|sukanya samriddhi account||9.10%|
|NSC (Aprox 5 Years)||8.50%|
|NSC (Aprox 10 Years)||8.80%|
|Poplular PPF Scheme||8.70%|
|senior citizen Savings scheme||9.20%|
- Sukanya Samriddhi Yojana good tax saving option
For parents of the girl child who fall in lower middle class income group, this scheme would turn out to be a blessing in two ways, i.e. investment for their daughter for a secure future as well as a tax saving option for up to 1.5 lakh per annum. This feature would bring more and more parents under this scheme and would thus benefit of lot many girl children in the country. It has also been anounced in Budget 2015 that the interest on Sukanya Samriddhi Yojana is Completely Tax Free.
- A decent Lock-In period in Sukanya Samriddhi Yojana
One of the most reliable and attractive feature of the scheme is it’s Lock in period. The account would mature after 21 years from the date when account was opened or on the marriage of the child, which ever falls earlier. It is noteworthy that the a girl in India can only be married after she has attained an age of 18 years and hence the maturity would take place only after that. However, the deposits have to be only made till 14 years of age. The girl can opt for a premature withdrawal, but only up to 50 per cent of the amount accumulated.
- Sukanya Samriddhi Yojana has a social purpose
This is one of the few schemes in India that comes with a special social intention in mind. Since the marriage of a girl child is a concern for almost every lower and middle class parents in India, this kind of investment schemes would prove to be a big relief for the parents and guardians. This way, a girl would not be a burden on parents, unlike what it has been happening all around.
Also, parents or guardians can’t withdraw this amount for any reason other than the marriage and higher education of the girl and hence, this serves and ensures the purpose well. This scheme can’t be compared to any other investment schemes at all.
- Matured amount of Sukanya Samriddhi Yojana to be paid only to the Girl Child
Once the account is matured, the proceeds will only be paid to the girl child and hence, the amount can’t be exploited or compromised by the parents for their livelihood needs. It certainly gives a great deal of financial independence to the girl child.
- Interest on amount of Sukanya Samriddhi Yojana, even after maturity
In all other investment schemes, interest is not paid once the scheme is matured. However, in this case, if the girl or the parents do not wish to withdraw the amount even after 21 years, same rate of interest would be paid on the gross amount till its final closure.
- Easy process for opening Sukanya Samriddhi Yojana
Last but not the least, the government of India has provided a considerable amount of flexibility for opening up of Sukanya Samriddhi Account. There is not much paper work and hassle associated with opening of this account.
- Sukanya Samriddhi Account can be opened anywhere in any of the nationalized banks and post offices with an initial deposit of just Rs 1,000 or it’s multiple with a maximum limit of Rs 1.5 lakh during a given financial year. A minimum amount of Rs 1,000 has to be paid every financial year in order to keep the account live.
- Once the girl turns 10, she can her self operate the account.
- This account can be closed at any point, if the parents or guardians feel that it is causing unwanted hassle to maintain it.
- It is transferable to any place in India.
With such moves, it is quite sure that lots of parents and guardians who want their girl child to be financially independent after they grow up would come forward and get an account opened in their daughter’s name.
Sukanya Samriddhi Yojana Account Features
- The parents or the guardian of the child can open Sukanya Samriddhi Yojana Account
- The girl child must have attained age of 10 years before opening Sukanya Samriddhi YojanaAccount
- Government has also provided a buffering period of one year, which means any child born between December 2003 to December 2004 can open Sukanya Samriddhi Yojana Account till December 2015.
- Only a single Sukanya Samriddhi Yojana can be opened per female child.
- Up to two accounts can be opened for a family with more than one girl child.
- In case of three girl children in the first time or twins in the second time, three accounts can be opened.
- Birth certificate of the girl child along with the residence and identity proof of the depositor will be required for opening the account.
- Currently these accounts can be opened in post offices only.
- A minimum amount of INR 1000 has to deposited every year in the account or else extra INR 50 will be charged as penalty.
- A maximum of INR1,50,000 can be deposited in a single financial year.
- The amount can be deposited in form of cash, bank cheque or demand draft.
- On sudden death of the account holder, the account can be closed on showing death certificate. The amount deposited in the account along with the interest will be given to the account operators on production of the certificate.
- If required, the Sukanya Samriddhi Yojana can be transferred any where in India.
- Sukanya Samriddhi Yojana account will be matured after twenty-one years of opening of the account.
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