Wednesday, 8 April 2020

Sukanya Samriddhi Account (SSA)

Sukanya Samriddhi Account (SSA)

Sukanya Samriddhi Account (SSA) is a Government of India backed saving scheme targeted at the parents of girl children. The scheme is aimed at the betterment of girl child in the country. 

Sukanya Samriddhi Scheme has been launched as a part of “Beti Bachao Beti Padhao campaign" to offer a means of saving to the girl child in every family.



The Sukanya Samriddhi Yojana encourages parents to build a fund for the higher education and marriage expenses for their female child. 

The scheme has picked up well in the country since this is a great step towards providing financial security and financial dependence to women. 

This post provides detailed information on features and other details of Sukanya Samriddhi Account.



Features of Sukanya Samriddhi Scheme

1. Attractive rate of interest of 7.6% per annum (w.e.f. 01-04-2020), calculated on yearly basis, yearly compounded, which is more than that offered by most other schemes in the market.
2. A minimum deposit of Rs 250/- and a maximum deposit of Rs1,50,000/- in a financial year. Deposits can be made in a lump sum and there is no limit on number of deposits either in a month or in a financial year.
3. Deposits made under this scheme are exempt from income tax under section 80C of the Income Tax Act.
4. A legal Guardian/Natural Guardian can open an account in the name of the girl child and can be operated on her behalf until she reaches the age of 18.
5. A guardian can open only one account in the name of one girl child and a maximum of two accounts in the name of two different Girl children.
6. The age of the girl at the time of opening account should not be more than 10 years.
7. The account can be opened at any of the authorized banks or at any post office.
8. If minimum Rs 250/- is not deposited in a financial year, the account will become discontinued and can be revived with a penalty of Rs 50/- per year with minimum amount required for a deposit for that year.
9. Partial withdrawal, maximum up to 50% of the balance standing at the end of the preceding financial year can be taken after girls child attains the age of 18 years.
10. The maturity of the account is 21 years from the date of opening of the account.
11. Money must be deposited for 15 years.
12. The normal Premature closure will be allowed after completion of 18 years /provided that girl is married.
13.  The account can be transferred anywhere where in India in case of girl moves from one city to another.
14. On attaining the age of 10 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 parents.
15. Payment on maturity to the girl child.



How to open Sukanya Samriddhi Account (SSA)? 

Accounts in name of the girl child can be opened at any post office or at a bank that is authorized by the Central Government to open an account under this scheme rules. 

The form for the scheme can be taken from any of these post offices/banks and can be filled and submitted along with other relevant documents. 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 guardian. 

The bank or post office will then verify the filled in details and approve the account opening. Make your first deposit and receive your passbook from post offices/banks official.

Documents required for Sukanya Samriddhi Account (SSA)

1. Sukanya Samriddhi Account opening form
2. Birth certificate of the girl child
3. Address proof or Aadhaar card of the parent (or guardian)
4. Identity proof or PAN card & Aadhaar card of the parent (or guardian)
5. Three photographs of the parent (or guardian) and the girl child.

Where to open Sukanya Samriddhi Account (SSA)?

Sukanya Samriddhi Account can be opened at the post offices or other authorized banks. RBI has authorized the following banks to open an account under Sukanya Samriddhi Scheme. 

Here is the list of banks where parents can contact to open Sukanya Samriddhi Account.
1. Allahabad Bank
2. Andhra Bank
4. Bank of Baroda
5. Bank of India
6. Bank of Maharashtra
7. Canara Bank
8. Central Bank of India
14. Indian Bank
15. Indian Overseas Bank
16. Oriental Bank of Commerce
17. Punjab & Sind Bank
18. Punjab National Bank
20. Syndicate Bank
21. UCO Bank
22. Union Bank of India
23. United Bank of India
24. Vijaya Bank


Drawbacks of Sukanya Samriddhi Yojana

1. High lock-in period of 21 years.
2. The rate of interest is not fixed. The interest rate is subject to change as per the notification issued by Central Government.
3. Limitation on number of account.

Premature closure of Sukanya Samriddhi Account

Premature closure of Sukanya Samriddhi Account is permissible under two specific circumstances:
1. In case of untimely death of the girl child who is the account holder. Under this situation, on the production of a death certificate issued by the competent authority, the account will be closed and the balance of the same will be handed over to the guardian or parents of the girl child.
2. In the second situation, the premature closure of the scheme is when the central government is satisfied that continuation of the account is becoming increasingly difficult for the parent or guardian. Permission for the same is to be issued by the central government under extreme conditions where a medical exigency or life-threatening diseases to the guardian or the parent of the account holder.


Premature Withdrawal

To meet the financial requirements of the account holder for the purpose of higher education and marriage, withdrawal up to 50% of the balance at the end of preceding financial year shall be allowed but such withdrawal shall be allowed only when the account holder girl child attains the age of 18 years. This means prior to 18 years of age of girl child, no withdrawal will be entertained.


Closure of Maturity of Sukanya Samriddhi Account (SSA)


The maturity of the Sukayana Samriddhi Account (SSA) is 21 years from the date of opening of the account. But in case marriage of the account holder takes place before completion of 21 years, the operation of the account shall not be permitted beyond the date of her marriage. 

In such closure of accounts, the account holder has to give an affidavit to the effect that she is not less than eighteen years of age as on the date of closing of the account. 

If the account is not closed after maturity, the balance will continue to earn interest as specified for the scheme from time to time.



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