Kids in This MP District Have Saved Rs 1 Crore in ‘Piggy Bank’ Savings Accounts!

Going by the televisions ads, online pop-ups and radio jingles, the general impression is that all parents are extremely concerned about their child’s financial future.

But what if the onus of a secure financial future is also on the child?

In a positive development coming out of Madhya Pradesh’s Chhindwara district, a small savings scheme initiated by the State government, has become very popular with nearly 6,000 children depositing ₹1 crore in their ‘piggy savings accounts’ over 11 years, reports the Press Trust of India.

Speaking to PTI, Krishnakumar Soni, the Chhindwara District Cooperative Bank Chief Executive Officer (CEO) said, “Since the launch of Arunodaya Gullak Yojana in 2007, around 6,000 children deposited ₹1 crore in the gullaks (piggy banks) that were given to them by 26 cooperative banks at various branches. Banks are also giving loans on these deposits for purposes like pursuing higher study, setting up businesses, for marriage, and other goals in life.”

According to this government scheme, the parents of a child can open a piggy bank savings account at the time of their birth with just 1.

“After opening the account, a ‘gullak’ with two keys is given to the child. While the account-holder keeps one of the keys the other key is kept with the bank concerned,” added Soni. “As per the procedure, the piggy bank is opened only when two keys are used simultaneously.”