SUKANYA SAMRIDDHI SCHEME (Syllabus: GS Paper 2 – Govt Scheme)

Context: The government raised the interest rates on Sukanya Samriddhi scheme by 20 basis points and three-year term deposit scheme by 10 basis points for the January-March quarter, while retaining the rates for all other small savings schemes.

Sukanya Samriddhi Scheme

• About: It is a central government scheme aimed to cater to a girl child.
• Launched: 2016
• Nodal Ministry: Ministry of Women and Child Development
• Objective: To support the financial well-being of the girl child as part of the "Beti Bachao – Beti Padhao" initiative.
• Eligibility: A parent or legal guardian of the girl child has the authority to open the account.

oThe girl child must be under the age of 10.

oOnly one account is permitted for a girl child.

oA family is restricted to opening a maximum of two SSY scheme accounts.

• Benefits of Scheme

oThe interest is compounded annually, with the flexibility of monthly interest pay-outs calculated on the completed thousands of the balance.

oThe scheme, falling under Section 80C of the IT Act, 1961, has been extended with triple exempt benefits. 

oThis implies that there will be no tax levied on the invested amount, the interest earned, and the withdrawn amount.