In a significant move from the government, Smt. Nirmala Sitharaman announced the introduction of the Mahila Samman Savings Certificate in the Budget 2023-24. This scheme has been launched to encourage savings and investment by the women of India.
The scheme “Mahila Samman Savings Certificate” was launched by the Department of Economic Affairs, Ministry of Finance to provide financial security to every girl and woman in India. The Department of Economic Affairs, Ministry of Finance, through an e-gazette notification issued on June 27, 2023, permitted all Public Sector Banks and eligible Private Sector Banks to implement and operationalize this scheme. This aims at enabling enhanced access to the scheme for girls/women. With this, ‘Mahila Samman Savings Certificate’ scheme will now be available for subscription in Post Offices, and eligible Scheduled Banks. The scheme has been in operation since April 1, 2023, through the Department of Post and is valid for a two-year period upto 31st March 2025.
What is Mahila Samman Savings Certificate
Mahila Samman Savings Certificate scheme has been launched by the government to support and empower women to save money and instil financial independence for themselves.
The scheme is designed to offer a maximum deposit facility of up to Rs 2 lakh in the name of women for 2 years at a fixed interest
- Provides attractive and secured investment options to all girls and women.
- An account can be opened under this scheme on or before March 31, 2025 for a tenure of two years.
- The deposit made under MSSC will bear interest at the rate of 7.5% per annum which will be compounded quarterly.
- Minimum of ₹1,000/- and any sum in multiple of 100 may be deposited within the maximum limit of ₹2,00,000/-.
- The maturity of the investment under this scheme is two years from the date of opening of the account under the scheme.
- It envisions flexibility not only in investment but also in partial withdrawal during the scheme tenor. The account holder is eligible to withdraw a maximum of up to 40% of the eligible balance in the scheme account.
Benefits
- The scheme provides attractive and secure investment options to all girls and women.
- The scheme offers an attractive and fixed interest of 7.5% interest compounded quarterly with flexible investment and partial withdrawal options with a maximum ceiling of ₹2,00,000/-.
- The tenure of the scheme is two years.
- Interest shall be compounded on a quarterly basis and credited to the account.
Features of Mahila Samman Savings Certificate
Features | Particulars |
Interest Rate | The scheme offers a competitive rate of interest, which is likely to be revised periodically by the government. It can help women build a secure investment option since it offers considerable returns. |
Government-Backed | This small savings scheme is backed by the government and barely carries any credit risk. |
Eligibility Criteria | This savings scheme can be opened only in the name of a girl child/woman. Even a woman/guardian of a minor girl child can open this scheme. |
Limit of Deposits | Under this MSSC scheme, the minimum deposit amount is Rs 1000 in multiples of Rs 100. The maximum deposit amount is Rs 2 lakh in one account or all MSSC accounts that an account holder holds. Note a woman/guardian of the girl child can open a second Mahila Samman Savings Certificate account after at least 3 months from opening the existing MSSC account. |
Maturity | The maturity period of this savings scheme is 2 years. As per the regulations, the maturity amount will be paid to the account holder after 2 years from the date of opening the account. |
Tax Benefits | TDS is not deducted from the interest received under the Mahila Samman Saving Certificate. However, as per CBDT’s notification, TDS will apply to this scheme. According to Section 194A, TDS will apply only when the interest received from the scheme in a financial year is Rs 40,000 or Rs 50,000 (in the case of senior citizens). |
Withdrawal Facility | Since a partial withdrawal facility is offered under this scheme, the account holder can withdraw up to 40% of the balance after 1 year from the account opening date. |
Eligibility
- An individual may open any number of accounts subject to the maximum limit for deposit and a time gap of three months shall be maintained between the existing account and the opening of other accounts.
- A minimum of ₹1000/- and any sum in multiples of one hundred rupees may be deposited in an account and no subsequent deposit shall be allowed in that account.
- A maximum limit of ₹2,00,000/- shall be deposited in an account or accounts held by an account holder.
Payment on maturity:
- The deposit shall mature on completion of two years from the date of the deposit and the Eligible Balance may be paid to the account holder on maturity.
- In calculating the maturity value, any amount in fraction of a rupee shall be rounded off to the nearest rupee, and for this purpose; any amount of fifty paisa or more shall be treated as one rupee, and any amount less than fifty paisa shall be ignored.
Withdrawal from account:
- The account holder shall be eligible to withdraw a maximum of up to 40% of the Eligible Balance once after the expiry of one year from the date of opening of the account but before the maturity of the account.
- In case of an account opened on behalf of a minor girl, the guardian may apply for the withdrawal for the benefit of the minor girl by submitting the specified certificate to the accounts office.
- In calculating the withdrawal from the account, any amount in fraction of a rupee shall be rounded off to the nearest rupee, and for this purpose; any amount of fifty paisa or more shall be treated as one rupee, and any amount less than fifty paisa shall be ignored.
Documents Required
Application Process
FAQs
What is the benefit of the scheme?
Women will get a 7.5% interest p.a. for the one-time deposit made by them at the end of two years.
When is the investment period for this scheme?
The scheme is available for investment for a duration of two years, starting from April 1, 2023, to March 31, 2025.