To cut paperwork for school principals in Delhi government schools and deal with delays in disbursement of grants to students, the Directorate of Education, Delhi government, will soon open bank accounts for students where the all the grants will be directly deposited.

At present the students of Delhi government schools get cash grants, channelled through the school principals, for purchasing uniforms and books, as well as scholarships given to students from SC/ST groups and minorities.

In addition, money may be given to students as rewards for good performance or to girls as part of the Laadli Scheme. The money for all such grants is transferred from the DoE accounts to the schools, where the principal is responsible for distribution to the students concerned.

“The current distribution procedure creates a huge administrative problem due to the large number of students and huge cash amounts involved. Once the accounts are opened, the money can be directly transferred from the government accounts to the child’s account,” said Rina Ray, Education Secretary.

The zero balance accounts are being opened with the Punjab National Bank and one parent of the minor student would be named as the joint account holder. The procedure for opening the accounts has already started, said directorate officials.

“By the end of July, all the students of Delhi government schools would have accounts,” added Ray. The zero balance account may also be used as a savings account for the student, and once they complete their schooling, students will still retain control of the account, said officials. “Almost 7,000 accounts have already been opened in April and we want the procedure completed by the end of July,” said a Directorate official.