Mahila Samman Savings Certificate, 2023

Source: The post is based on the article “Public Sector Banks and eligible Private Sector Banks authorized to implement and operationalise Mahila Samman Savings Certificate, 2023” published in PIB on 1st July 2023

What is the News?

The Department of Economic Affairs, Ministry of Finance has permitted all Public Sector Banks and eligible Private Sector Banks to implement and operationalise the Mahila Samman Savings Certificate, 2023.

What is Mahila Samman Savings Certificate Scheme?

Mahila Samman Savings Certificate is a one-time savings scheme for women.

The scheme was announced in the Union Budget FY 2023-24 to provide financial security to every girl and woman in India.

Key Features of the Mahila Samman Savings Certificate Scheme:

Who can open the account? An account under this scheme can be opened by a woman for herself or by the guardian on behalf of a minor girl child.

Tenure: An account can be opened under this scheme on or before March 31, 2025, for a tenure of two years

Interest rate: The deposit made under MSSC will bear interest at the rate of 7.5% per annum which will be compounded quarterly.

Limit on minimum and maximum investment: Minimum of ₹1000 and any sum in multiple of 100 may be deposited within the maximum limit of ₹200,000.

Maturity of the investment under this scheme is two years from the date of opening of the account under the scheme.

Partial withdrawal upto 40% of eligible balance can be availed after the expiry of one year from the date of opening of the account

Significance of the scheme: This scheme is a commendable initiative by the Government to empower women and promote their financial independence. 

– As the scheme yields high returns on investment in a short span of 2 years, it will definitely increase women investors especially in rural areas.