Karnataka shifts scheme from LIC to India Post

The State Cabinet on Thursday decided to implement a redesigned Bhagyalakshmi scheme under the Sukanya Samriddhi Account scheme of India Post, instead of the Life Insurance Corporation (LIC) of India.

The scheme is aimed at providing financial assistance to a maximum of two girls born into a below poverty line (BPL) family by issuing an insurance bond and its maturity value will be given to the girl at the age of 18.

The scheme was launched during 2006-07 for improving the sex ratio by providing incentives to BPL families with girl children. Under the scheme, the girl will get ₹1 lakh upon attaining the age of 18.

A Cabinet meeting, presided by Chief Minister B.S. Yediyurappa, decided to transfer the scheme from the LIC to India Post from 2020-21 owing to low rate of interest in the former. Owing to the reduced rate of interest, the LIC had asked the State government to deposit the difference in the amount and this led to the scheme being shifted to India Post.

According to official sources, under LIC conditions the State government had to deposit an additional ₹2,000 crore in the name of beneficiaries. The LIC argued that the premium amount being paid by the government is less, sources said. The government pays a premium of ₹19,350 for the first child and ₹18,350 for the second.

India Post provides an interest rate of 7.6% on deposits under the scheme. The public is allowed to invest a minimum of ₹250 and a maximum of ₹1.5 lakh per year. The Siddaramaiah government neglected the scheme by reducing the allocation in the State budgets, the Bharatiya Janata Party (BJP) has alleged.

Sources said that the Cabinet also discussed the Rajyotsava awards, which will be given out in a simple ceremony this year. Among other decisions, the Cabinet withdrew a 2018 government order for a French company to establish an unit generating electricity from solid waste at Chikkanagamangala in Bengaluru limits.

To curb illegal depositors’ schemes, operated by chit funds and private firms, the Cabinet also approved the Karnataka Banning of Unregulated Depositors’ Scheme Rules, 2020. It also approved the Karnataka State Civil Services (Conduct) Rules, 2020; the Karnataka State Civil Services (Amendment) Rules, 2020, for recruitment of stenographers typists, and the Karnataka State Civil Services (Amendment) (Classification, Control and Appeal) Rules, 2020, according to official sources.

The Cabinet also approved the revised estimate of ₹26.92 crore for implementing early warning dissemination system in three coastal districts under the National Cyclone Risk Mitigation Project.

Source: The Hindu