From Savings to Strength: Empowering India’s Girls Through Sukanya Samriddhi Yojana
Introduction
The empowerment of the girl child is central to India’s vision of inclusive and sustainable development. Recognising that financial insecurity remains a major barrier to girls’ education and dignity, the Government of India launched the Sukanya Samriddhi Yojana (SSY) on 22 January 2015 under the Beti Bachao, Beti Padhao campaign. The scheme was designed as a bridge between financial security and social transformation. By encouraging families to plan early for their daughters’ education and well-being, Sukanya Samriddhi Yojana has helped instill a sense of confidence, inclusion, and long-term progress at the grassroots level.
As the scheme completes 11 years in January 2026, it has emerged as one of India’s most impactful social-financial initiatives dedicated exclusively to the girl child.
Objectives and Vision of the Scheme
The Sukanya Samriddhi Yojana was designed with three broad objectives:
• To encourage families to plan early for their daughters’ education and well-being.
• To reduce gender discrimination rooted in economic insecurity
• It is aimed at building long-term financial security for the girl child by offering high returns, tax benefits, and flexible withdrawal options for education and future needs.
Unlike conventional savings schemes, SSY links household financial behaviour with social transformation, reinforcing the idea that investing in daughters is both economically rational and socially essential.
Key Features of Sukanya Samriddhi Yojana:
The SSY Scheme is a low-risk deposit scheme with the Government guaranteeing the principal amount and the interest payment as per the rates decided each quarter and paid annually.
- A SSY account is an account that holds the funds deposited towards the SSY scheme.
- The account may be opened anytime from the birth of the girl child until she attains the age of 10 years.
- Only one SSY account is permitted per girl child, and a family can open accounts for a maximum of two girl children (exceptions for twins/triplets)
- The account is transferable to any location within India.
- The account is managed by the parent/ guardian until the girl child reaches the age of eighteen.
- Parents or legal guardians can open an account for their Indian girl child at any India Post office or branch of any Public Sector Bank and authorised Private Sector Banks.
- Investments made under the scheme qualify for tax benefits under Section 80C of the Income Tax Act, 1961.
- Even if the account is not closed at maturity, it continues to earn interest at the rate applicable to Post Office Savings account.
The current interest rate in the SSY scheme of 8.2% per annum is among the highest for savings instruments dedicated to daughters!
Financial Structure and Deposits
- Minimum annual deposit: ₹250
- Maximum annual deposit: ₹1.5 lakh
- Deposits can be made for a period of up to fifteen years from the account opening date.
- Interest is calculated monthly and credited annually, ensuring stable long-term compounding.
As of December 2025:
• 4.53 crore+ accounts opened
• Total deposits exceed ₹3.33 lakh crore
These figures highlight the widespread public trust in the scheme.
Withdrawal and Maturity Provisions:
SSY balances long-term savings with flexibility:
• Up to 50% withdrawal permitted for education after Class 10 or attaining age 18 , whichever occurs earlier.
• The withdrawal may be taken either as a lump sum or in installments, subject to a maximum of one withdrawal per year for a period of up to five years.
• The SSY account matures upon the completion of twenty-one years of its opening date
Premature closure is permitted only under exceptional circumstances such as:
• Marriage of the account holder after attaining 18 years
• Death of the account holder
This ensures the scheme remains focused on genuine welfare objectives rather than short-term withdrawals.
Economic and Social Significance
- Promoting Women’s Education: By earmarking funds for higher education, SSY directly addresses dropout rates among adolescent girls and supports the national goal of increasing female Gross Enrolment Ratio.
- Financial Inclusion: SSY brings millions of families—especially in rural and semi-urban India—into the formal savings ecosystem.
- Gender Equality: The scheme challenges patriarchal norms that view daughters as financial liabilities, reframing them as long-term assets.
- Atmanirbhar Bharat Vision: By enhancing women’s economic agency, SSY contributes to building a self-reliant and productive workforce.
Tax and Investment Benefits:
- Exempt on Investment: Contributions up to ₹1.5 lakh per financial year are deductible from taxable income under Section 80C of the Income Tax Act.
- Exempt on Interest: The interest accrued in the SSY account is completely tax-free.
- Exempt on Maturity: The entire maturity amount, including interest received by the girl child is exempt from income tax
This ‘Exempt-Exempt-Exempt’ (EEE) status ensures that the corpus grows without any tax deductions at any stage, providing significant financial relief for the girl’s education or marriage.
Challenges and Limitations
Despite its success, certain concerns remain:
• Limited awareness in remote tribal and migrant populations
• Dependence on household income capacity
• Inflation risk affecting long-term real returns
• Need for integration with education and skill-development schemes
Addressing these challenges is crucial for maximising the scheme’s transformative potential.
Way Forward
To strengthen the impact of SSY, the following steps are essential:
• Increased awareness campaigns through schools and Anganwadi networks
• Linking SSY with scholarships and digital education platforms
• Periodic revision of interest rates in line with inflation
• Convergence with women-centric skilling and employment programs
Such integration would move SSY beyond savings toward holistic empowerment.
Conclusion
The Sukanya Samriddhi Yojana represents a powerful fusion of economic policy and social reform. By placing education, dignity, and financial independence at the core of the girl child’s future, the scheme has reshaped family attitudes and strengthened India’s commitment to gender equality.
As India advances toward greater gender equality and inclusion, SSY plays a vital role in ensuring that every girl is supported with the resources and confidence she needs to grow, succeed, and realize her full potential.