Children's Day, also known as 'Bal Diwas' is celebrated across India every year on November 14. This date commemorates the birth anniversary of the nation's first Prime Minister, Jawaharlal Nehru, affectionately known as “Chacha Nehru”. The day is also celebrated to highlight the needs of the children such as their access to healthcare and education. On this special day, Moneycontrol tells you about a bank that aims to teach kids to value and save money as early as possible.
Located in Gujrat’s Idar, Bal Gopal Bank, built in 2009, strives to teach children to set aside their pocket money and use it with prudence. After turning 18, when the child needs money for higher education or for fulfilling other goals, the bank provides their savings with interest.
The bank was even given a mention by Union Minister Parshottam Rupala at Rajya Sabha during the passage of Multi-State Cooperative Societies (Amendment) Bill, 2023. Lauding the efforts of the bank, Rupala said, “You will be surprised to note that today around Rs 16 crore is deposited in the bank.”
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Chaudhari Manisha, the bank’s official, told Moneycontrol that children between the age of 0 and 18 years can become members. “We have over 17,000 members now. Around 200 to 300 children become members every month,” she said, adding till now the bank has given credit around Rs 3 crore.
According to Manisha, about 3,000 depositors have been able to withdraw their money after turning 18 so far. Most of these children belong to middle and lower-income families from Sabarkantha and Aravalli districts.
A membership fee of Rs 110 needs to be paid to admit the child and a free piggy bank is provided. The concept of saving is slowly introduced to kids from the age of five. According to a report in The Times of India, agents of the bank visit the children's home every month and open piggy banks in the presence of the parents. A receipt is given for the money collected. The bank pays 6 percent interest to its members and offers loans at 12 percent.
According to the Bal Gopal Bank website, chairman of the cooperative society Ashwin Patel said the organisation believes in teaching children the concept of living an independent life.
“We extend credit of maximum 50 percent of our total deposits to ensure that even if instalments are delayed we still have money to pay back children who want money mid-term or who reach the age of 18,” he told TOI.
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