It was 10 years ago in 2015, when Prime Minister Narendra Modi, who had then been in power for under a year, initiated the Sukanya Samriddhi Scheme.
Announced on January 22, 2015, the scheme is a part of the Government of India's Beti Bachao, Beti Padhao movement.
10 Years Of Sukanya Samriddhi Scheme.
The scheme essentially provides a high interest rate of 8.2 per cent on Sukanya Samriddhi Accounts opened either at Indian Post Office(s) or authorised commercial banks.
In addition, the Sukanya Samriddhi Scheme scheme also provides tax benefits under 80c of the Income Tax Act, 1961. Here, Section 80C of the Income Tax Act provides tax deductions of up to Rs. 1.5 lakh annually.
As of November 2024, a total of 4.1 crore accounts have opened under the scheme.
PM Shri @narendramodi launching Sukanya Samridhi Account Scheme during launch of "Beti Bachao, Beti Padhao" Programme pic.twitter.com/NAKiYDWWoW
— PIB India (@PIB_India) January 22, 2015
A parent may invest up to Rs 1.5 lakh annually under the Sukanya Samriddhi Scheme (the minimum is Rs 250 per year).
Taxpayers can reduce their taxable income by investing in select scheme, including the Sukanya Samriddhi Scheme.
The scheme matures when the girl (woman) turns 21, and the accumulated sum, along with the interest rate, is given directly to her.
Fiscal Foundation For a Girl Child
The fundamental philosophy behind the scheme to extend support to the care and fostering of a girl child, beyond schemes that provide equity.
Here, the scheme aims to build and support attempts at equity with a strong fiscal foundation. This scheme therefore encourages parents of a girl child to invest in their daughter.
However, according to some, it follows a reserved idea of fiscal security. As the scheme focuses on the girl’s education and marriage. The scheme's interest rates have also been brought down over the years.
Initially, the scheme had an even higher interest rate of 9.1 per cent, but it was later revised to 9.2 per cent in March 2015. However, the interest rate was brought down to 8.2 per cent in January 2024.
Liquidity is another major issue that is seen by some when one at looks at the pros and cons of the scheme.
Features Of The Sukanya Samriddhi Scheme
The account can be opened for a girl child of age below 10 years.
The account can be opened by the natural or legal guardian of the girl child.
Under the scheme rules, the depositor, in this case, the parent, can open and operate only one account in the name of a girl child.
As far as a number of accounts is concerned, a deposit can open account for only 2 girls.
After reaching the age of 18, the girl can use the partial withdrawal facility to satisfy the costs for marriage and further education.
A minimum initial deposit of Rs 250 and subsequent deposits can be made in multiples of Rs 50.
The total annual deposit limit is capped at Rs 1,50,000; any excess amount will not earn interest and will be returned.