Bank of Maharashtra Sukanya Samriddhi Yojana

The interest rate changes as per government interventions since the government announces interest rates quarterly for the policy.

Eligibility Criteria

Potential Applicant: The account can be opened for a girl child from the day of her birth till she attains 10 years. The account is applicable for girl children of India. The girl who is not a citizen of India or has NRI status cannot open the account. Each girl can own one Yojana. 

The Guardian or Parent: The legal guardian or parents of a girl child can buy the Yojana in the name of the girl child. The legal guardian or parents of the child must be a citizen of India. They can buy up to two Yojanas for a maximum of two girls per family. However, in the case of twins or triplets, they can buy a maximum of three files. They can choose the amount of deposit from a minimum amount of INR 250 to a maximum of INR 1.5 lakhs. 

Investment Opportunity: Bank of Maharashtra Sukanya Samriddhi Yojana does not offer any loan facility. However, the Yojana gives the provision to save tax up to INR 1.5 lakhs. As the scheme offers a high interest rate till maturity, the legal guardians or parents of a girl child can get a high return on the investment. However, it is suggested that they invest in the policy for an extended period.

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Features of the Policy

The key features of the Bank of Maharashtra Sukanya Samriddhi Yojana have been discussed below:

1. Account Management:

   The legal guardian or parents can open the account in the name of the girl child. The age of the child must be under 10 years. However, if the account is opened when the girl attains 10^th years of her age, the opening of the account becomes subject to further approval. It can delay the opening of an account by one year. The legal guardians or parents will manage the account till the child attains 18 years. Once she turns 18 years old, the girl can manage the account and make a partial withdrawal as per her requirements.

2. Deposits:

   The Yojana has a deposit limit of a minimum of INR 250 and a maximum of INR 1.5 lakhs. If the beneficiary wants to increase the deposit amount, they can increase it annually in the multiple of 100. However, they cannot cross the maximum deposit limit that was specified. Any amount deposited more than the maximum deposit limit will not earn any interest. 

3. Interest Rate:

   The interest rate of the Yojana is compounded annually. Therefore, the beneficiaries can get a high return on the money invested. They should invest the deposited amount for an extended period to gain better benefits. The present interest rate of the Yojana is 7.6%. However, the Government of India announces the interest rate quarterly. The interest rate changes as per the government interventions.

4. Money Withdrawal:

   Bank of Maharashtra Sukanya Samriddhi Yojana does not allow withdrawal of money till the child attains 18 years. In the 18^th year, the girl child can make partial withdrawal up to 50% of the deposited amount. They can withdraw money for the marriage for educational purposes by showing required documents. The policy matures when the girl child attains 21^st year. They can make a complete withdrawal of the deposited money with interest earned.

5. Pre-closure of Account:

   Bank of Maharashtra Sukanya Samriddhi Yojana has the provision to close the account before it matures as per the family's financial constraints, terminal disease of the beneficiary, or other related cases. The pre-closure of the account is offered based on the compassionate measure taken by the authority. Therefore, it is subject to the decision taken by the governing authority to close the account before the scheme matures successfully.

Policy Benefits

1. Tax Benefits:

   The Yojana offers tax benefits on the deposited amount as per Section 80C of the Income Tax Act 1961. The tax benefits are offered to the deposited amount of the maximum limit of INR 1.5 lakhs. Any amount deposited more than INR 1.5 lakhs will not bear any interest. Only one family member per family will get the tax benefit. 

   “Tax benefit is subject to changes in tax laws. Standard T&C apply.

2. Interest Rate:

   Bank of Maharashtra Sukanya Samriddhi Yojana offers a high interest rate as it is compounded annually. The present interest rate offered by the Yojana is 7.6%. In 2014, the Yojana used to offer an interest rate of 9.1%. The interest rate is subject to change as per government interventions since the Government of India announces the interest rate of the Yojana quarterly.

3. Transferability:

   The ownership of the Bank of Maharashtra Sukanya Samriddhi Yojana is non-transferable. However, the Yojana can be availed from branches of the Bank of Maharashtra across the state. Therefore, if the children are required to move to another city or state for education or marriage, they can withdraw money from the scheme from the nearest branch of the Bank of Maharashtra available. However, they can partially withdraw in a lump sum or five instalments if they attain 18 years.

4. Flexibility:

   Bank of Maharashtra Sukanya Samriddhi Yojana offers flexibility to choose the amount of deposit from a minimum of INR 250 to a maximum of INR 1.5 lakhs. They can increase the deposit amount annually in the multiple of INR 100. If they fail to deposit the minimum amount mentioned in the Yojana, they will be liable for a penalty of INR 50. Once the penalty is paid, they can continue the Yojana without impacting the scheme's overall investment and return aspects. 

Process to Purchase the Policy

Bank of Maharashtra Sukanya Samriddhi Yojana applies to the girl child of a family. It has certain age restrictions and criteria that make the Yojana critical to meet the child's needs when she attains 21 years. Therefore, the applicants are required to read all the information related to the Yojana before purchasing it.

However, to purchase the Yojana, they must collect the application form from the nearest branch or website of the Bank of Maharashtra. They can also access the form from the website of RBI. The Yojana application form is required to be filled in by providing the required information. They must submit the filled-up application form and related documents with the attached DD or cheque to purchase the Yojana successfully.

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Documents Required 

The interested individuals, who want to buy Bank of Maharashtra Sukanya Samriddhi Yojana, must read all the information and details about the scheme carefully. They should buy it once they agree with the terms and conditions and clauses mentioned in the document. However, to purchase the scheme, they are required to submit the following documents: 

1. SSY Form:

   The applicant must get the Sukanya Samriddhi Yojana application form from the nearest branch of the Bank of Maharashtra or the RBI website. They are required to fill up the form carefully by providing the necessary details as required. 

2. Date-Of-Birth Certificate:

   Bank of Maharashtra Sukanya Samriddhi Yojana offers various benefits per the girl child's age. Therefore, the applicant must submit the photocopy of the Date-Of-Birth certificate to validate the beneficiary's age. 

3. Photograph:

   The applicant must attach the passport size photographs attached with the documents submitted as the application form.

4. KYC:

   The bank is required to operate the KYC process of the account holder as per the guidelines of RBI. Therefore, the applicant must submit the necessary ID proofs as mentioned to help in completing the KYC process.

   • Age proof such as Voter's ID, Aadhar Card, Passport, etc.

   • Address proof such as Voter's ID, Aadhar ID, Driving License, Passport, etc. 

   The applicant is required to attach a demand draft or cheque to complete purchasing the Yojana. 

Terms and Conditions 

The individuals must read all the terms and conditions mentioned in the Yojana before purchasing the scheme. However, if they purchase the scheme, they must consider the following aspects.

• The policy would offer to have a maximum of four nominees

• In case of the death of account holders, the nominee will get all the deposits and interests as applicable.

• In case of the policyholder’s demise, a death certificate must be produced and followed by a legal procedure.

Investment

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Cessation of the account

The account can be ceased in case of financial pressure, death of guardian or parents, or death of account holders. However, the decision to close the account depends on the review and implementation of bank authority as per the guidance.

Policy Exclusion

The Yojana does not have any provision for the welfare of a male child. It does not offer tax benefits on deposited amounts more than INR 1.5 lakhs. The Yojana does not entitle any loan facility with its service offerings. However, it allows girl children to gain more interest in the money deposited to date than other available policies.