SUKANYA SAMRIDDHI YOJANA

Gender equality denotes equal respect, rights, and opportunities for everyone, regardless of
their gender identity. It is also underpinned by legislation that protects these rights. In
essence, gender equality means that everyone, regardless of their gender, should have the
same access to opportunities, resources, the ability to participate in decision-making, and to
be able to be employed, for example. This applies across all sectors of our social, economic
and political world. This would include, for example, ensuring that fathers have the same
rights as mothers to take time off to care for their children, and that women should have the
same access to grants and loans to start their own business.

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 currently 8.1 per cent and provides
income-tax benefit under section 80 C of the Income Tax Act,1961. Even the returns are tax
free in the scheme. A Sukanya Samriddhi Account can be opened any time after the birth of a
girl till she turns 10, with a minimum deposit of Rs 250 (Earlier it was Rs 1,000). In
subsequent years, a minimum of Rs 250 and a maximum of Rs 1.5 lakh can be deposited
during the ongoing financial year.

Government backed Sukanya Samriddhi Yojana (SSY) is targeted towards a girl child and
her financial needs such as education and marriage. However, as the exact age at which she
would require the funds is uncertain, the scheme tries to be flexible. The investors, on the
other hand, need to keep in mind five important years or time spans before investing in SSY.
Consider, for instance, the girl child's age, and the time left for her education and marriage

A Sukanya Samriddhi Yojana (SSY) account can only be opened in the name of a girl child
(beneficiary) below 10 years, as on the date of the opening of the account. The date of birth
proof is, therefore, essential. The rules allow for the opening of a maximum of two accounts
for two girls in a family. One can't open two accounts for one girl. The girl child's age is very
important to find out the duration of the scheme. 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. To meet
the requirement of her higher education expenses, partial withdrawal of 50 per cent of the
balance is allowed after she turns 18.

The importance of age in this scheme has been segregated accordingly:

• 5 years
The request for the first premature closure of an SSY account can be put forward after
the completion of five years of the account opening. That too, as per the rules, on
extreme compassionate grounds such as medical support in life-threatening diseases.
Still, if the account has to be closed for another reason, it will be allowed, but the
entire deposit will only get interest of a Post Office Savings Bank account.
• 10 years
When the beneficiary, i.e., the girl child crosses the age of 10, she can operate the
account on her own. She can make any future contributions to her own account. The
parents, too, can continue to deposit in the same account.
• 15 years
To open an SSY account, a minimum initial deposit of Rs 250 (Earlier it was Rs
1,000) is required. Thereafter, a minimum of Rs 250 (Earlier it was Rs 1,000) up to a
maximum of Rs 1.5 lakh can be deposited in the account annually. To keep the
account active, deposits need to be made only for the initial 15 years. For a 9-year-
old, deposits have to continue till the child turns 24. Between ages 24 and 30 (when
the account matures), the account keeps earning interest on the balance.
SSY is a long-term investment scheme. The partial and full withdrawal window is
sacrosanct subject to applications made to foreclose the account prematurely .
• 18 years
The next window for withdrawals is allowed when the girl turns 18. And the rules
make it clear that the funds are for her needs and not used for any other purpose. A
maximum of 50 per cent of the account balance of the preceding year may be
withdrawn for the purpose of higher education of the girl.
For this, not just a written application, but a documentary proof in the form of a
confirmed admission offer in an educational institution or a fee slip from such
institution clarifying such financial requirement is required. Further, the withdrawal
amount will be restricted to the actual demand of fee and other charges required at the
time of admission as shown in the offer of admission or the relevant fee slip issued by
the institution.
• 21 years
Irrespective of the age, the SSY account will run for 21 years from the date of its
opening. So, if the girl child's age is 9, the scheme will mature when she turns 30. The
 rules, however, permit final closure any time before 21 years if the parent files an
application for such premature closure for the purpose of her marriage and confirms
through an affidavit that the applicant is not below 18 years on the date of marriage.
At times, this could be a roadblock as the his could be a roadblock as the closure is
subject to conditions as seen above.

Sukanya Samriddhi Yojana (SSY) carries the highest tax-free return with sovereign guarantee
and comes with the exempt-exempt-exempt (EEE) status. The annual deposit (contributions)
qualifies for Section 80C benefit and the maturity benefits are non-taxable. SSY can be
opened in a post office or a bank. One can also make deposits through electronic means, i.e.,
e-transfer to the concerned post office or bank if either has access to the core banking facility.