Ladli Beti Scheme

A social assistance scheme sponsored by the J&K Govt. for newborn girl children born on or after 01/04/2015. The objective is to arrest the declining female sex ratio. The scheme ensures that the girl child does not become a burden for the parent or guardian at the time of her marriage.

The "Ladli Beti" scheme is implemented by the Government of the Union Territory of Jammu and Kashmir through Jammu and Kashmir Bank to provide long-term financial support to eligible girl children. Under the scheme, a recurring deposit account is opened by the natural or legal guardian of the girl child. The Government contributes Rs. 1,000/- per month for 14 years, subject to the beneficiary's eligibility and approval by the Social Welfare Department. After the recurring deposit matures, it is converted into a cumulative term deposit account. The maturity amount is paid after the beneficiary attains the prescribed age and conditions under the scheme are fulfilled. The scheme is a hybrid deposit plan having two phases:

• Phase I: A recurring deposit for 14 years having a date of completion as one month after the last installment received in the account.
• Phase II: A Cumulative Term Deposit (CCR) for 7 years.

After the maturity of Phase I (recurring deposit account) the account will graduate to Phase II (Cumulative Term Deposit account). The monthly contribution of Rs. 1000/- in Phase-I is made by the J&K Govt. The annual income of the parents from all sources should be less than Rs. 75,000. The required documents are the Application Form, KYC Norms of the Parent/ Guardian, and the sanction letter from the CDPO (Child Development Project Officer).

Benefits & Features:

1. A recurring deposit account under this scheme shall be opened by the natural or legal guardian of the girl child.
2. A contribution of Rs. 1000/- per month will be made by J&K Government from the birth of the girl child/account opening date for the next 14 years. (A total of Rs. 168000/- only will be contributed by the UT.)
3. No credits other than a monthly contribution of Rs. 1000/- by the J&K Government is to be allowed in Phase I (RD Account)
4. After the maturity of Phase I (recurring deposit account) the account will graduate to Phase II (Cumulative Term Deposit account).
5. No partial drawls or Foreclosure will be allowed under any circumstances during any phase.
6. Maturity benefits under the scheme will be paid to the beneficiary on completion of 21 years of age or 21 years after the first installment or 85 months after the last installment whichever is later by crediting the savings bank account of the girl child. However, the girl child is at liberty to reinvest the amount in any deposit plan of the bank at card rates.
7. The nomination facility will not be applicable in the scheme. In the unfortunate event of the death of the girl child, the account will be closed immediately and the balance amount along with interest accrued will revert to the Union Territories of J&K and Ladakh;
8. In the event of the death of the beneficiary, before she attains 21 years of age, the amount in the Recurring Deposit account / Term Deposit account shall be closed before maturity without pre-payment charges.
9. The account opened at a particular branch may not be transferred to any other branch even if the girl child in whose name the account stands shifts to a place other than the city or locality where the account stands.
10. The beneficiary/parent or guardian of the beneficiary shall produce a ‘life certificate of the beneficiary (girl child)’ certified by a gazetted officer or by the principal of the school/ college where she is enrolled before the concerned bank branch after every three years and at the time of maturity.
11. As the scheme is aimed at households having an annual income of less than 75000/- The TDS shall not be deducted as long as the guardian/beneficiary furnishes form 15G/15H every year and has a valid PAN