Prime Minister Narendra Modi will launch scheme similar to public provident fund (PPF) specifically aimed at the girl child from Panipat on January 22.
The scheme called the ‘Sukanya Samruddhi Account’ will be launched alongwith the ‘Beti Bachao, Beto Padhao’ campaign.
As per the scheme an account can be opened from the birth of the girl child till she has attained the age of 10 years. The account will have a minimum and maximum investment limits of Rs 1,000 and Rs 1,50,000 lakhs respectively.
“The scheme is aimed at addressing the gender imbalance and discrimination by creating a positive discrimination in favour of the girl child,” an official spokesman said.
The child could close the account earliest at 21 years after opening the account or her marriage date whichever is earlier, he added.
The spokesman added that the investments made under the scheme would also be eligible for exemption under 80C of Income Tax Act, 1961.
Similarly, the exemption of interest income and withdrawals from taxes is being looked into by the department of revenue (DoR).
For sake of simplicity manner of calculation of interest would be similar to PPF. PPF’s have one of the highest rates of interest rate among all schemes offered by the government.