SECURING FUTURE WITH SUKANYA SAMRIDDHI SCHEME

 

Sukanya Samriddhi  Yojana is a small savings scheme in India aimed at promoting the education and marriage of the girl child. It was launched as a part of the Beti Bachao Beti Padhao campaign in 2015.

Under the scheme , parents or guardians of girl children  aged 10 years or below can open a savings account in their name. The scheme offers several tax benefits and a high interest rate of 7.6 %  per annum.

To open a Sukanya Samriddhi Yojana account we will need to provide proof of girl child's age, address, and identity. The minimum deposit to open the account is RS.250 and can subsequently deposit any amount up to RS 1.5 lakh per year.

The account can be opened at any post office or authorized bank and can be opened until the girl child reaches the age of 21. At that point , the account will be closed and the money can be withdrawn for her education or marriage expenses.

CHALLENGES

• Lack of awareness : There have been reports of low awareness about the scheme , particularly in rural areas. This has led to low enrollment and low balances in the accounts.
• Lack of access
• Limited investment options : The scheme offers only one investment option , which is a fixed deposit like account, this means that the money can not be invested in other instruments like mutual funds, which could potentially offer higher returns.
• Penalty for premature withdrawal : If the account is closed before the girl child turns 21 , a penalty of 1.5% of the balance is imposed. This could be a hindrance for those who may need to use the money for the emergencies.
• Poor customer services

WAY FORWARD

Increase awareness among people especially in rural area. Take measures to improve accessibility by increasing the number of post office banks. Offer more investment options. Waive penalty for premature withdrawal. Improve customer service.