Sukanya Samriddhi Yojana– Everything You Need to Know  – 10 Key Facts – UPSC Questions

If you are preparing for major competitive examinations in India, then you must have to prepare for major and revolutionary Government scheme that benefits millions in India. Similarly, you also have to prepare for Sukanya Samriddhi Yojana. If you are also preparing for these exam and looking for Sukanya Samriddhi Yojana in Detail, then this blog is dedicated to you.

So, let’s start-

Why Sukanya Samriddhi Scheme is in the News?

Sukanya Samriddhi Yojana (SSY) is in the news as the Union government recently raised the interest rates for the scheme from 8% to 8.2% for the January-March 2024 quarter. This move aims to make the SSY more attractive, encouraging parents and guardians to invest in the scheme for the financial well-being of their girl child.

Source – DD News

The scheme requires a minimum annual deposit of ₹250 and allows a maximum of ₹1,50,000. The current interest rate, increased to 8.2% for the January-March 2024 quarter, makes it an attractive long-term savings option. The maturity period is 21 years, providing a substantial corpus for the girl’s future education or marriage.

Importantly, both the principal and interest earned are tax-exempt, offering additional financial benefits. SSY not only promotes financial inclusion but also empowers families to plan for their daughters’ aspirations.

This initiative allows guardians to open a savings account for their daughters at authorized commercial banks or India Post branches.

Eligibility criteria mandate that the girl must be an Indian resident, aged below 10 at the account’s initiation, and the account can only be opened by a parent or legal guardian. Each family is limited to two SSY accounts, and NRIs are ineligible. The girl assumes control of the account upon turning 18.

With a minimum deposit of ₹250 and a maximum of ₹1.5 lakh per financial year, deposits must be made for 15 years, maturing after 21 years. Partial withdrawals, up to 50% for education, are permitted after the girl turns 18 or completes the 10th standard.

To incentivize investment, SSY provides tax benefits under Section 80C, allowing deductions up to ₹1.5 lakh, and tax-exempt interest and proceeds upon maturity or withdrawal. This dual focus on savings and education exemplifies SSY’s commitment to empowering the financial future of India’s girl children.

Source – National Saving Institute of India

Translating to “Save the Daughter, Educate the Daughter” in English, the scheme aims to raise awareness about gender-based discrimination, ensure the survival and protection of the girl child, and encourage her education.

The key objectives of the Beti Bachao Beti Padhao scheme include preventing sex-selective practices, providing financial incentives for the birth of a girl child, promoting education opportunities for girls, and ensuring their overall well-being.

The initiative involves collaboration between various government departments, NGOs, and the community to bring about a positive change in societal attitudes towards the girl child.

Led by Prime Minister Narendra Modi and supported by the Ministries of Women and Child Development, Health and Family Welfare, and Education, BBBP started in 100 districts where the problem was worse.

The goal was to make sure girls are born, survive, and get a good education. To spread the message, they even made Olympic champion Sakshi Malik their ambassador, and a campaign called #SelfieWithDaughter became famous.

BBBP is like a big effort by the government to make people understand that having a girl is good, and they should be treated equally. It’s all about making sure every girl gets a fair chance to live, learn, and be celebrated in our society.

1. Launch Date: Beti Bachao Beti Padhao (BBBP) was launched on January 22, 2015, by Prime Minister Narendra Modi.
2. Objective: The scheme aims to address the declining child sex ratio in India and promote the welfare, survival, and education of the girl child.
3. Government Collaboration: BBBP is a joint initiative of the Ministry of Women and Child Development, the Ministry of Health and Family Welfare, and the Ministry of Education.
4. Initial Focus: The scheme initially targeted 100 districts across India with low child sex ratios.
5. Brand Ambassador: Olympic bronze medallist Sakshi Malik was appointed as the brand ambassador for BBBP in 2016.
6. #SelfieWithDaughter Campaign: The campaign encouraged people to share selfies with their daughters on social media, aiming to change societal attitudes towards the girl child.
7. Multi-Sectoral Action: BBBP involves comprehensive efforts from various sectors to improve the overall status and perception of the girl child.
8. Awareness: The initiative seeks to raise awareness about gender-based discrimination and the importance of educating and celebrating girls.
9. Inclusivity: BBBP strives to create a more gender-equal society where the birth and education of every girl are valued.
10. National Impact: The scheme represents a significant step in reshaping societal norms and fostering positive change for the well-being of the girl child across the nation.

1. Save for the Future: Sukanya Samriddhi Scheme helps parents save money for their daughters’ important needs like education and marriage, giving them financial stability.
2. Change How People Think: The scheme wants to make people see the value of girls and shift old-fashioned ideas about their worth, encouraging a more positive mindset.
3. Fix Gender Imbalance: Sukanya Samriddhi addresses the problem of having more boys than girls in the country, trying to make things fairer for everyone.
4. Make Girls Strong: By creating a special savings plan just for girls, the scheme aims to make them strong and capable by providing financial help for their growth and education.
5. Help India Grow: Sukanya Samriddhi Scheme contributes to India’s progress by supporting girls, making the country better and more equal for everyone.

1. Flexible Deposits: Allows a minimum deposit of ₹250 and a maximum deposit of ₹1.5 lakh in a financial year, providing flexibility based on individual financial capacities.
2. Age Limit: The account can be opened in the name of a girl child until she reaches the age of 10 years, encouraging early and long-term savings.
3. Single Account: Only one account is allowed per girl child, promoting a focused and singular savings plan for each beneficiary.
4. Accessible Locations: Accounts can be opened either in Post offices or authorized banks, making it convenient for parents or guardians to choose the most accessible option.
5. Education Withdrawals: Permits withdrawals for the purpose of higher education expenses of the account holder, aligning with the scheme’s objective of supporting educational needs.
6. Premature Closure: The account can be prematurely closed in the event of the girl child’s marriage after she turns 18, providing flexibility in managing life events.
7. Portability: Allows the transfer of the account anywhere in India from one Post office or Bank to another, accommodating changes in residence or preference.
8. Maturity Period: The account matures after 21 years from the date of opening, making it a long-term savings avenue for significant future expenses.
9. Tax Benefits: Deposits in the account qualify for deduction under Section 80-C of the Income Tax Act, offering tax benefits to the depositors.
10. Tax-Exempt Interest: The interest earned in the account is exempt from Income Tax under Section 10 of the Income Tax Act, providing additional financial advantages to the account holders.

1. Ensuring financial security by creating a dedicated savings platform for girls.
2. Promoting regular savings habits to cultivate a culture of financial planning.
3. Supporting higher education expenses through accessible and flexible withdrawal options.
4. Assisting families with the financial burden of marriage-related costs.
5. Maintaining focus by restricting the scheme to one account per girl.
6. Initiating accounts in the name of a girl child until age 10.
7. Providing tax benefits to incentivize and encourage savings participation.
8. Allowing premature closure for marriage-related financial needs after turning 18.
9. Facilitating account portability to accommodate changes in preferences or residence.
10. Ensuring tax-exempt interest earnings to enhance overall financial benefits.

1. Encourages long-term savings, fostering financial security and independence for girls.
2. Empowers girl children by granting operational control at the age of 18.
3. Allows flexible deposit options, with a minimum of ₹250 and a maximum of ₹1.5 lakh annually.
4. Supports education goals by permitting accessible withdrawals for academic expenses.
5. Eases financial burdens by allowing partial withdrawals for marriage-related costs.
6. Maintains focus with a restriction of one SSY account per girl, preventing fund fragmentation.
7. Initiates accounts for girls below 10, encouraging early financial awareness and planning.
8. Provides tax benefits, including deductions under Section 80C of up to ₹1.5 lakh.
9. Facilitates account transfer across institutions for convenience.
10. Ensures tax-exempt interest earnings, maximizing overall financial benefits.

1. Number of Daughters: Up to two daughters below 10 years & In the case of twin or triplet girls, three accounts are permissible.
2. Account Limit: Only one account per girl child is allowed.
3. Initial and Subsequent Deposits: Minimum initial deposit: ₹250.
4. Subsequent deposits in multiples of ₹150.
5. Annual Ceiling: Maximum annual deposit: ₹150,000.
6. Deposit Period: Deposits can be made for up to 15 years.
7. Maturity Period: Account matures after 21 years or on the girl’s marriage, whichever is earlier.
8. Documentation: A birth certificate for the girl child is required for account opening.

Key Facts about Sukanya Samriddhi Scheme

FAQs on Sukanya Samriddhi Scheme – UPSC Questions on Sukanya Samriddhi Scheme