The Government of India has taken a big initiative for a better and brighter future of Girl Childs in India. It has been approved under Government of India – Notification No. G.S.R.863 (E) dated December 02, 2014 and circulated to Banks by Reserve Bank of India vide their letter No.RBI/2014-15/494/IDMD(DGBA).CDD/No.4052/15.02.006/2014-15 dated 11th March 2015.
In this scheme- parent or legal guardian can open the account on behalf of a girl child of age less than or equal to 10 years. And maximum 2 to 3 accounts can be opened in case of twin girls as second birth or the first birth itself results in three girl children. The tenure of the deposit will be 21 years from the date of opening. It has highest interest rate 8.60%.
Rs 1000 is the minimum deposit amount and maximum is Rs 1, 50,000/- a year. And for irregular payment or for revival of account Rs 50 per year will be the penalty. Cash/Cheque/ DD/Transfer/Internet Banking are allowed for deposit. In case of depositor’s death or depositor’s extreme medical condition premature closure is allowed. Also in case of withdrawal 50% deposits are paid after the age of 18 years for the purpose of higher education, marriage etc.
As per section 80C of the IT Act, 1961 – there will be no tax on the amount invested, amount earned as interest and amount withdrawn.