R. Selvakumar and Dr. P.

Chellasamy, International Journal of Research in Engineering, IT and Social

Sciences, ISSN 2250-0588, Impact Factor: 6.565, Volume 09, Issue 5, May 2019, Page 347-351

Evolution of Sukanya Samriddhi Yojana

(Ssy): National Scheme for Financial
Inclusion in India
R. Selvakumar1 and Dr. P. Chellasamy2
1
(ICSSR Doctoral Fellow, School of commerce, Bharathiar University, Coimbatore, Tamil Nadu)
2(
Professor, School of Commerce, Bharathiar University, Coimbatore, Tamil Nadu)
Abstract: Sukanya Samriddhi Yojana is a small savings scheme which can be opened by the parents or a legal
guardian of a girl child in any post office or authorized commercial banks. Here, the girl child is termed as the
“Account Holder” and the guardian is the “Depositor”. Any parent or legal guardian of a girl child who is 10
years or below can open this account in the name of the child. To accelerate the growth and development and
condense the income inequality and poverty, the access to safe, easy and affordable credit and other financial
services to the poor and vulnerable groups, are recognized as a pre-condition. The paper studies the effect of
Sukanya Samriddhi Yojana scheme initiative on the concept of financial inclusion. The Sukanya Samriddhi
Yojana scheme can easily develop the different groups of society and can help to achieve the objective of
financial inclusion. The aim of financial inclusion is delivery of banking and financial services in a fair,
translucent and impartial manner at reasonable cost to the vast sections of disadvantaged and low income group.
Key words: Financial Inclusion, SSY, Literacy rate, Social programme, Economic development.
JEL Classification Code: G21, L26, C14, M13.

I. INTRODUCTION
The Government‟s desire to use the banking system as an important agent of change was at the core of
most policies that were formulated after Independence. The planning strategy recognized the critical role of the
availability of credit and financial services to the public at large in the holistic development of the country with
the benefits of economic growth being distributed in a democratic manner. In recognition of this role, the
authorities modified the policy framework from time to time to ensure that the financial services needs of
various segments of the society were met a satisfactory level.
The National Mission on Financial Inclusion or Sukanya Samriddhi Yojana a small savings scheme
was started by the Ministry of Finance, Department of Financial Services, Government of India, with a wide
vision to provide access to banking facilities to those people who are not having any bank accounts or still
unbanked from the formal banking sector, so that they can also be involved in the banking sector which is
necessary for economic development and for the welfare of poor people. Under this scheme people will get
basic bank accounts with insurance facility and an additional facility of overdraft. Thus, they will avail benefit
offered by banks and facilities provided by the government and will be able to develop small savings habits
among them, and it will enhance capital formation, which will in result increase economic development of the
country.
Since from its inauguration on January 22, 2015 the Sukanya Samriddhi Yojana scheme of financial
inclusion is becoming very effective. The post office and public sector banks are playing their role in making the
scheme a success with approx. The woeful scheme of the girl child, the Sukanya Samriddhi Account is a good
start to give her financial independence. It will not give returns like the equity market or mutual funds, but it is a
less risky investment avenue. The current interest rate is also good. It may or may not be enough to save only in
this scheme for marriage and education considering inflation but can be a part of one‟s portfolio. It can be part
of the debt investments. 1.88 laksh accounts have been opened under the Sukanya Samridhi scheme for girl
child as a part of „Beti Bacho-Beti Padhao‟ campaign through Post offices in India with effect from 1st
February 2015. The deposits would fetch an interest rate of 9.1 per cent and provide income tax rebate as well.
The Finance Ministry, 56,471 accounts have been opened in Karnataka, followed by 43,362 accounts in Tamil
Nadu and 15,877 accounts in Andhra Pradesh.
The financial inclusion awareness of the tribal community, region after its implementation, though the
scheme had a strong social mission of financial inclusion, the mission had not been fully translated into
satisfactory action on the ground that the scheme was not fully included. Still half of the tribal citizen, not
getting awareness of banking services especially. The study results of financial inclusion initiatives, benefits,
and awareness of these societies, people, so that the main objectives of improving their awareness and standard
of living can be aimed.

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Sciences, ISSN 2250-0588, Impact Factor: 6.565, Volume 09, Issue 5, May 2019, Page 347-351

II. REVIEW OF LITERATURE

Mr. Rameshwar P. Rasal (2016) “A Study of Sukanya Samrudhi Yojana in the Post office of Thane
District” Out of 265 countries of the world, Sukanya Samrudhi Yojana is launched in India which is one of the
developing & agrarian countries. This scheme was launched for the first time through India Post department.
India post has the largest network of post office in the world. India post has the power to deliver development to
“the last mile” Sukanya Samrudhi Yojana in one of the highest paid interest scheme in India with the minimum
of deposit, the account holder will maximum benefit. The earlier measures were not yielding the desired result.
The research chose seven talukas of Thane district in Maharashtra state for the study. The study aims to review
the performance in seven months since the date of inception of the scheme. It was found that maximum number
of account is opened in the talukas of Murbad, Kalyan and Ulhasnagar and the maximum amount deposited in
the talukas of Thane and Kalyan.
Shri Jayant Sinha, Minister of State in the Ministry of Finance (2015)The number of accounts opened
upto 31.10.2015 under Sukanya Samriddhi Yojana across the country is 76, 19,668. The amount collected under
these accounts is Rs. 2838.73 crore. The scheme was notified on 2.12.2014 and the maturity period of accounts
opened under the scheme is 21 years. The scheme has completed one year. In this short time, the impact is that
76, 19, 668 girl children got Rs. 2838.73 crore deposited in their name. This was stated by in told Lok Sabha.
NDTV Press Trust of India (2015) As many as 1.80 lakh accounts have been opened under the
'Sukanya Samridhi' scheme in less than two months of launch of the special programme for the girl child, with
the maximum number of accounts in Karnataka and the least in Bihar. As per data available with the Finance
Ministry, 56,471 accounts have been opened in Karnataka, followed by 43,362 accounts in Tamil Nadu and
15,877 accounts in Andhra Pradesh.
However, Bihar accounted for the least number of accounts opened at just 204, followed by Kerala (222) and
West Bengal (334), the data showed. The National Capital saw 2,054 accounts being opened while 4,177
accounts were opened in Haryana and 7,620 in Uttar Pradesh.
As per the details of the scheme, 'Sukanya Samridhi Account' can be opened at any time from the birth of a girl
child till she attains the age of 10 years, with a minimum deposit of Rs.1,000. A maximum of Rs. 1.5 lakh can
be deposited during the financial year. The account can be opened in any post office or authorized branches of
commercial banks.
Selvamagal Semippu Thittam (2016) (Sukanya Samriddhi Account in Chennai) is a savings scheme
for the benefits of girl child. More than 50,000 accounts were opened in the Chennai city region, within just one
month of its launch by the Department of Posts. Being one of the higher interest earning savings schemes, Selva
Magal Thittam in post office and banks has got huge popularity within no time. News was published
in thehindu.com that the Department of post has targeted to open 4.5 lakh accounts under this Sukanya
Samriddhi Yojana New Saving Scheme.

III. STATEMENT OF THE PROBLEM

Most of the population of India is living in rural areas hence they have less access to formal banking
sector. The role of financial inclusion becomes active by providing banking facilities to rural population and
involving them in circle of finance. Sukanya Samriddhi Yojana is a National Mission for Financial Inclusion
based on „Beti Bachao Beti Padhao‟ i.e inclusive growth to ensure access to financial services, namely
Banking/Savings, education, health, marriage, equality in a affordable manner, launched by Shri. Narendra modi
on Jan 22, 2015.
1st February 2015, India post has a vast network of Post offices in India. There are 154,822 Post offices
of which 139,886 i.e. 89.84% are in rural areas & 15726 i.e. 10.16% in urban areas. Even though there was an
increase in the bank accounts, this scheme was not fully recognized by the rural people of India. According to
Post Master General of Chennai City Region Mr. Merwin Alexander reports told Indian Express news that
the State has opened 6.10 lakh accounts in the last two months, substantially higher than the other States.
The scheme has caught the interest of every region across the State, with Chennai City Region that
comprises seven northern districts and Union Territory of Puducherry accounting for 2.23 lakh new
accounts. He said that he knew about the scheme through his relative. "Usually such schemes don't reach
urban and rural area people. However, due to the reach of postal department, even a small rural post off ice
was able to open 200 acounts". This has boosted the coffers of the Postal department in the most remote
location. But there should be a continuous operation of schemes to give the real success of the scheme.
Hence the researcher has framed following questions
What is the performance of Participant banks of Sukanya Samriddhi Yojana in India?
Research Objectives
 To analyze the performance of Sukanya Samriddhi Yojana Scheme in India
Methodology
Source of Data

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R. Selvakumar and Dr. P. Chellasamy, International Journal of Research in Engineering, IT and Social
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The study will be based on secondary data. The study will adopt Purposive Sampling methods. The
data for the research will be collected from government publications, published articles, newspapers, reports and
official websites.
Period of the study
The study covers a period of 3 years from 2014 – 2015 to 2016 – 2017.
Significance of the Study
The study would contribute to the analysis of different aspect of the performance of Sukanya Samriddhi
Yojana in India with special reference to Scheduled tribes in Southern Tamilnadu. The study helps the decision
makers to identify the progress and challenges of the scheme.
Scope of the Study
The study considers only the account holders under the Sukanya Samriddhi Yojana in India with
special reference to Scheduled tribes in Southern Tamil Nadu. To analyze the performance of banks, only those
banks which are the participants of this scheme will be taken.

IV. ANALYSIS AND DISCUSSION

Table – 1 Rate of Interest for Sukanya Samriddhi Yojana from the year 2014 – 2017
Minimum Amount Maximum Amount
Financial Year Assessment Year Rate of Interest (Rs.) (Rs.)
2014 -2015 2015 - 2016 9.1% 1000 1,50,000
2015 - 2016 2016 - 2017 9.2 % 1000 1,50,000
2016 - 2017 2017 - 2018 8.6% 1000 1,50,000
Source: India stat.
Sukanya Samriddhi Yojana scheme has well been accepted by the people as it provides the financial
security and independence to the girl child and also to her parents and guardians. Rate of interest 8.60% Per
Annum calculated on yearly basis, yearly compounded is payable to Sukanya Samriddhi Yojana. Minimum Rs.
1000 and Maximum Rs. 1, 50,000 in a financial year Subsequent deposit in multiple of Rs. 100 Deposits can be
made in lump-sum. No limit on number of deposits either in a month or in a financial year. The account reaches
maturity after the time period of 21 years from the date of opening it. Deposits are made for first fourteen years,
after this period, the account will only earn applicable rate of interest. The account, if not closed, will not earn
interest at the prevailing rate.
Table – 2 Bank – wise Number of Accounts Opened and Amount Deposited under Sukanya
Samriddhi Yojana (SSY) in India 2014 – 2017
Amount
List of Banks Accounts Percentage (In Rs.) Percentage
Allahabad 7,568 0.82 249,687,360.30 0.96
Andhra Bank 2,847 0.31 83,981,116.00 0.32
Axis Bank 2,239 0.24 141,398,084.00 0.54
Bank of Baroda 36,721 3.98 1,121,372,923.00 4.29
Bank of India 56,663 6.14 1,269,198,000.00 4.86
Canara Bank 18,032 1.96 646,057,316.00 2.47
Central Bank of India 14,862 6.61 339,017,872.00 1.30
Corporation Bank 260 0.03 11,847,624.00 0.05
Dena Bank 1,047 0.11 19,360,257.00 0.07
IDBI Bank 14,633 1.59 691,073,956.00 2.65
Indian Bank 3,737 0.41 156,040,765.00 0.60
Oriental Bank of Commerce 748 0.08 16,760,165.00 0.06
Punjab and Sindh Bank 9 0.00 329,200.00 0.00
Punjab National Bank 45,678 4.95 1,674,874,783.00 6.41
State Bank of Bikaner and Jaipur 6,612 0.72 191,303,449.00 0.73
State Bank of India 6,69,780 72.63 18,436,092,009.00 70.60
State Bank of Mysore 3,770 0.41 106,104,271.00 0.41
State Bank of Patiala 7,678 0.83 262,204,277.00 1.00
Syndicate Bank 1,041 0.11 45,495,808.00 0.17
UCO Bank 4,811 0.52 113,158,645.70 0.43
Union Bank 19,803 2.15 493,142,853.00 1.89
United Bank of India 1,314 0.14 44,372,190.00 0.17
Vijaya Bank 2,314 0.25 - 0.96
Total 9,22,167 26,112,872,924.00

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Source: India stat.

Table -2 reveals that the Sukanya Samriddhi Yojana if public and private sector bank wise performance
of period from 2014-2015 to 2016-2017. It is found that, the highest level accounts opened in total beneficiary
of account holdings in State Bank of India was 6,69,780 accounts. The lowest level account opened in Punjab &
Sind Bank was 9 accounts for the period of 2014-2015 to 2016-2017. To opened total number of account is 9,
22,167 accounts. It is found that, the highest amount of Balance in accounts State Bank of India was Rs
18,436,092,009.00 Crores. The lowest amount of Balance in accounts Punjab & Sind Bank was Rs 3, 29, 200.00
lakhs. To received the total amount of Sukanya Samriddhi Yojana Rs 26,112,872,924.00 Crores from the period
of 2014-2015 to 2016-2017.
Table – 3 State wise number of account Opened and Amount Deposited under Sukanya
Samriddhi Yojana (SSY) in India (as on 31.01.2017 and 30.06. 2018)
As on 31.01.2017 No. of Accounts
States/ UTs No. of Accounts Amount (In Rs.) As on 30.06.2018
Andaman and Nicobar
1,751 28,367,012 2,327
Islands
Andhra Pradesh 5,47,111 6,496,091,165 7,11,392
Arunachal Pradesh 9,300 123,136,063 12,700
Assam 1,78,168 1,202,747,988 2,17,728
Bihar 3,89,104 2,551,881,393 6,01,464
Chandigarh 4,351 135,135,656 9,500
Chhattisgarh 2,26,933 1,918,483,176 3,94,836
Dadra and Nagar Haveli 299 4,249,663 895
Daman and Diu 846 11,174,826 1,156
Delhi 1,81,831 4,639,447,855 2,72,127
Goa 28,881 407,624,591 37,207
Gujarat 3,04,176 5,144,092,901 4,84,348
Haryana 3,47,235 7,000,844,124 4,62,377
Himachal Pradesh 1,61,922 2,275,704,567 2,24,028
Jammu and Kashmir 1,30,474 1,325,745,426 1,45,055
Jharkhand 5,16,201 2,384,907,588 5,81,408
Karnataka 10,06,755 11,547,364,662 1,199,310
Kerala 3,45,504 4,547,704,269 4,29,616
Lakshadweep 29 1,153,107 10
Madhya Pradesh 4,41,980 4,010,542,546 6,24,975
Maharashtra 8,10,532 15,481,668,571 1,166,040
Manipur 21,913 183,161,603 27,128
Meghalaya 6,315 51,307,475 10,072
Mizoram 3,285 15,711,165 4,073
Nagaland 4,544 20,529,698 5,472
Odisha 3,96,304 4,098,454,616 5,36,638
Puducherry 4,073 120,671,813 8,838
Punjab 2,72,000 4,411,777,725 3,72,761
Rajasthan 4,04,209 2,113,765,930 6,63,158
Sikkim 6,845 100,891,547 8,630
Tamil Nadu 13,59,810 15,338,541,734 15,94,443
Telangana 3,75,522 5,001,504,428 4,96,615
Tripura 20,673 178,406,075 25,868
Uttar Pradesh 11,62,995 5,490,342,748 15,08,668
Uttarakhand 2,72,784 3,341,239,482 3,45,041
West Bengal 6,63,576 5,963,065,380 7,99,538
India 1,06,08,231 117,667,438,567 13,985,442
Source: India stat.
Table 3 reveals that Sukanya Samriddhi Yojana if State wise performance of the scheme the
performance of 2016-2017 to 2017-2018. The highest value of total beneficiary of account holdings in Tamil
Nadu state of 13, 59, 810 accounts for the period of 2016-2017. The lowest value of beneficiary of accounting
holdings in Lakshadweep state of 29 accounts for the period of 2016-2017. The highest value of total Balance in
beneficiary accounts Maharashtra state of Rs 15,481,668,571 crore for the period of 2016-2017. The lowest
value of Balance in beneficiary accounts Lakshadweep state of Rs 1,152,107 lakhs for the period of 2016-2017.

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The highest value of total beneficiary of account holdings in Karnataka state of 11, 93,310 accounts for the year
2017-2018. The lowest value of beneficiary of accounting holdings in Lakshadweep state of 10 accounts for the
period of 2017-2018.
Suggestions
Government can easily encourage people to open new accounts but the biggest challenge is increasing
the transactions in those accounts
The six lakh villages have in the country. There should allow opening SSY account to micro-bank in every
village.
Banks should introduce card-based payments which can be encashed all over the country. This may be
card to card transfer, or simply a scratch card type.
The technology platforms being envisioned to facilitate financial inclusion should enable bank transactions also.
Towards this end, there is a need to integrate the various modules - savings, credit, insurance, etc. - into the
technology framework so that holistic inclusive efforts are possible in the rural areas.

V. CONCLUSION
Sukanya Samriddhi Yojana is a very good and beneficial scheme to every girl child and provides
financial support by their savings from their account for the welfare (education, marriage expenses) of girl
children. It also provides interest on the deposits but varies every year which is a limitation of this scheme, so
measures have to be taken for maintaining same interest rates every year and for the overall success of the
scheme. This scheme also plays a role in economic development of the country by giving importance to girl
child by promoting the educational opportunities for them. Therefore the Government of India has to take such
initiatives further for the upliftment of poor, neglected sections of the society and others like unemployed etc.
They have to take necessary steps to meet the expectations of the people regarding such schemes.

VI. REFERENCES
 Mr. Rameshwar P. Rasal (2016) A Study of Sukanya Samrudhi Yojana in the Post office of Thane District Rexjournal ISSN
2321-1067 Volume 3 Issue 3 Page | 168.
 Paramjitsingh (2016) “role of financial services of India post in growing economy of india: a specific survey from 2012 to
2015”.International Journal of Multidisciplinary Research Review, Vol.1, Issue – 5, May -2016. Page – 233
 Paramjitsingh (2016) “role of financial services of India post in growing economy of india: a specific survey from 2012 to
2015”. International Journal of Business and Administration Research Review, Vol. 2, Issue.12, Oct - Dec, 2015. Page 9
 Kshama B Vidhate, Ritesh Kundap (2016)”, Awareness about Newly Launched Social Security Schemes among Rural Population
in India”, National Journal of Community Medicine Volume 7 Issue 12 Dec 2016.
 www.ssy.com
 www.rbi.com
 www.gov.data.in
 Indian express news
 www.business-standed.com/article SSY
 www.wikipedia.com

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