Narendra Modi’s slogan ‘Beti Bachao Beti Padao ‘ brought the above scheme in India by Indian govt.
The main features of the scheme is as follows:
- It is a savings scheme for girl child to help her for her higher education and wedding.
- The contributions to this scheme are eligible for tax deduction under 80-C (upto 1.50 lakhs bracket)and interest on this scheme is tax-free.
- A parent or guardian can open one account in the name of the girl child (entry level is from birth to age upto 10) in post office, PSU banks etc. Private banks like axis bank and icici bank also offering this scheme.
- The scheme promises return of 9.1% .The interest is revised annually.The tenure of deposit is 14 years from the date of opening. But the account will mature only after 21 years from the date of opening of account.
- One can withdraw 50% of the account balance before maturity to meet any urgent needs of the child after the girl attains the age of 18.
- When the girl attains the age of 10, she can operate this account but deposits can be made by parents only.
- The account is transferable throughout India. This account may be closed in the event of girl’s death.
But this scheme is not much attractive due to low rate of interest. Govt should improve the interest rate above 10% and it should be assured one.