- In the Union Budget 2023-34, the Government announced the Mahila Samman Savings Certificate (MSSC), a new small-savings scheme for women.
- An account under this scheme can be opened by a woman for herself or by the guardian on behalf of a minor girl child.
Minimum and Maximum Limit
- An individual may open an unlimited number of accounts, subject to the maximum deposit limit, and three months shall be maintained between the existing account and the opening of another account.
- A minimum of Rs 1000 and any sum in multiples of Rs 100 can be deposited in an account with maximum limit of Rs 2 lakh, with no additional deposits permitted.
Interest on MSSC
- The interest rate on deposits made under this Program is 7.5% per year.
- Interest is calculated quarterly and credited to the account.
- Partial withdrawal upto 40% of eligible balance can be availed after the expiry of one year from the date of opening of the account.
- The account will mature after 2 years from the date of opening.
- Premature closure of the account may be permitted, any time after the completion of 6 months from the date of opening of the account for any reason and in such cases interest payable shall be two percent less than the rate specified for the scheme i.e. 5.5%.
Why in 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.
- This aims at enabling enhanced access of 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.