Sukanya Samriddhi Yojana: Government cuts minimum annual deposit requirement to Rs 250

The Union Government has reduced minimum yearly deposit required under popular girl child savings scheme, Sukanya Samriddhi Yojana to Rs 250 from Rs 1,000 earlier. This has been lowered to enable more people to enjoy benefits of this scheme. In this regard, Government has amended Sukanya Samriddhi Account Rules, 2016.

Sukanya Samriddhi Yojana

It was launched as a small savings scheme under Beti Bacho Beti Padho (BBBP) in January 2015. It aims to motivate parents to open an account in name of girl child for her welfare and meet expense requirements of higher education and marriage. Under this scheme, parent or legal guardian of a girl child can open an account in her name until she attains the age of ten years. The account can be opened via post office or commercial banks.
Deposits can be made in this account up to 14 years from date of opening of account. After this period, the account will only earn interest according to applicable rates. The minimum deposit that can be made every year into account is now Rs 250 and maximum amount on yearly basis is Rs 1.50 lakh.
The girl child can withdraw 50% of the money in the account after reaching age of 18 for higher education (18 years limit for preventing child-marriages). The amount deposited in it will get interest rate of 9.1% and there will be no income tax for this. The account will remain operative until the girl child reaches 21 age.

Month: Current Affairs - July, 2018