TN Selvamagal Semippu Scheme
The Tamil Nadu Selvamagal Semippu Scheme is a scheme launched by the Government of India. The system is primarily for the parents of the girl children intending to build a fund for the brighter future of the girls. The fund is made to save money for future education and marriage of the girls.
The initiative was introduced by the Prime Minister of India Narendra Modi on January 22, 2015. The scheme was launched under the already existing Beti Bachao, Beti Padhao movement. However, the programme now provides tax benefits as the interest rate of 7.6%.
The sole purpose of the scheme is a better future for the girl children of India. The government launched this scheme to empower the girls and to provide them with a better education.
Under this scheme, the accounts are to be opened at any Post office and authorized commercial banks. The reports are allowed to be opened from the birth of the girl child to till the time she is ten years old. The accounts can only be opened by the parents or the guardian of the girl. They can only open one account for one child, and a maximum of two accounts for their two children are allowed. However, if you have twins or triplets, then you can open more than that. The accounts are readily transferable anywhere in India.
The account must be opened with a minimum amount of INR 250 of deposit amount first. After that, any amount is allowed along with several hundred rupees deposits. The maximum deposit limit prescribed under this scheme is INR 150,000. Plus, a minimum deposit of INR 250 must be made every year or else there is a fine of INR 150.
The girl is allowed to manage her account after she is ten years or older. It is allowed to withdraw 50% of the whole amount after the age of 18 for higher studies purposes. The account will reach maturity after 21 years from the date of opening the account. After maturity, the report will only get interested according to the applicable rates. However, if the account is not close, then it will receive interest at the current standard. The closing of the report is allowed only if the girl is above 18 and married.
After the launch of the scheme, under the Section 80C of the Income Tax Act, only the deposits made in the account were allowed for a tax deduction. The limit for that was INR 150,000 in 2015 to 2016. However, in the union budget 2015, the Finance Minister Arun Jaitley announced that the tax release on the interest from the accounts and withdrawal after maturity of the funds is making the benefits of the taxes similar to the Public Provident Fund. Then, the changes were made after April 1, 2015. Plus, it was decided that the tax benefits will be released annually.
- Address Proof of the Parents or Guardians
- Birth or School Certificate of the Girl Child
- A minimum amount of one thousand rupees must be deposited annually.
- The maximum deposit amount is 1.5 lakhs per year.
Maturity of the Account
The account will mature after completing 21 years from the opening date. The final closure of the report is only allowed after the completion of 21 years. Before that, the account holder can apply for closure only if the girl child is older than 18 and married. They can also close the account for the marriage of the girl child but only after providing the required documents and with the confirmation that the girl child is not less than 18 years old. Given that, no premature closure is allowed before one month of the marriage and after three months of the marriage of, the girl child.
After maturity, the total balance and the interest must be paid to the account holder. For that, the account holder must submit her identity proof, resident proof etc. plus, there will be no interest if the account completes 21 years from the date of its opening.
Implementation of Selvamagal scheme
By mid-March 2015, inside two months of dispatch, 1,80,000 records had been opened under the plan. Karnataka, Tamil Nadu and Andhra Pradesh announced the highest number of new accounts. The number of records opened up to October 2015 under Sukanya Samriddhi Yojana the nation over is 76,19,668. The effect is that 76,19,668 young lady youngsters got ₹28.38 billion (US$400 million) stored in their name.
Transfer of the Account
The accounts are allowed to be transferred anywhere in the country. The reports can be transferred from banks to post office or from the post office to bank or from the post office to post office. The guardian can make the transfer of the child after paying a hundred rupees and completing the required formalities. If the Post Office or Bank doesn’t have the CBS facility, then the transfer will be done electronically.
Please visit the official website to learn more about this scheme.
Frequently Asked Questions
Q. What is selvamagal scheme?
The Tamil Nadu Selvamagal Semippu Scheme is a scheme launched by the Government of India specially for the parents of the girl children.
Q. When was the scheme launched?
The scheme was launched in 2015.
Q. Who launched this scheme?
The Prime Minister of India Narendra Modi launched this scheme under the Beti Badhao Beti Bachao Movement.
Q. What is the main objective of the scheme?
The main objective of the scheme is a better future of the girl children of India. The government launched this scheme to empower the girls and to provide them with a better education.
Q. Who can open an account under this scheme?
The accounts are allowed to be opened from the birth of the girl child to till the time she is ten years old. The accounts can only be opened by the parents or the guardian of the girl. They can only open one account for one child, maximum of two accounts for their two children are allowed.
Q. Where can I open an account?
The accounts can be opened at any Post office and some of the authorized commercial banks.
Q. What is the maturity time of this account?
The account will mature after 21 years from the date of it’s opening.
Q. Can I transfer the accounts?
Yes, the accounts are allowed to be transferred anywhere in the country. The accounts can be transferred from banks to post office or from the post office to bank or from post office to post office.
Q. Who can make the transfer of the accounts?
The guardian can make the transfer of the child after paying a hundred rupees and completing the required formalities.