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.
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 rate.
Interest Rate of Mahila Samman Savings CertificateMahila Samman Saving Certificate is available from 01 April 2023 in the post offices at an interest rate of 7.5% per annum. The interest will be credited quarterly and will be paid at the time of the account closure. |
Here are the main details of the scheme-
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Features |
Particulars |
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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. |
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Government-Backed |
This small savings scheme is backed by the government and barely carries any credit risk. |
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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. |
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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. |
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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. |
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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). |
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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. |
An account can be opened under this scheme at post offices and qualified scheduled banks. Here is the procedure in detail-
Step 1: Download the 'Mahila Samman Saving Certificate Application' from the qualified bank's official website, or else visit the bank and ask for a hard copy of the form.
Step 2: Complete the application form with the correct details.
Step 3: Fill in the declaration and nomination details.
Step 4: Submit the application form, the deposit amount and the required documents to the bank’s executive.
Step 5: Upon successful submission, you will receive the certificate that verifies your investment in the scheme.
Step 1: Download the ‘Application for Purchasing the Certificate’ from the Indian Post’s official website. Alternatively, you can visit the nearest Post Office branch and obtain the form.
Step 2: Fill in the required details in the form with the post office address, account type, payment, personal details, declaration and nomination details, etc.
Step 3: Submit the application form with the required documents.
Step 4: Make the required deposit in the post office, either in cash or cheque.
Step 5: After the process completion, you will receive a certificate acknowledging your investment in the scheme.
The Ministry of Finance and Department of Economic Affairs have authorised all the public sector banks and qualified private sector banks to operate this scheme through an e-gazette that was announced on 27th June 2023.
Here is the current list of qualified banks offering this small savings scheme-
If an individual intends to close the Mahila Samman Saving Certificate account, it is possible to do it before 2 years in the given circumstances-