India has made considerable progress toward gender equality and women’s empowerment because to its vibrant and diversified population. The “Mahila Samman Saving Certificate” Scheme is one of the outstanding initiatives designed to empower women economically and socially. This creative program, created to support women’s financial security and independence, has been having a good effect across the country.In this Article we will have a closer look at Mahila Samman Saving Certicate Schemes, its features, Account opening and Closure.
About Mahila Samman Saving Certificate Scheme(MSSC)
Mahila Samman Savings Certificate is a one-time unique small savings Scheme and has been made available for a two-year period for investment up to 31st March 2025 as a way to commemorate Azadi Ka Amrit Mahotsav and was also announced by the government in Budget 2023. A risk-free savings program specifically designed for women and girls of all ages.
Key Features of Mahila Samman Saving Certificate Scheme
Only for Women/Girls : The Mahila Samman Saving Certificate program is entirely for women, as suggested by its name, in light of the need to focus on women-centric financial solutions. A woman or the guardian of a minor girl child can open a Mahila Samman Saving Certificate Scheme.
100% secure and safe investment : It is a Government-Backed Scheme and ensures the security of the investment. Women who might be risk-averse or new to investing will find this particularly attractive.
Options for Flexible Investment : The program provides women with flexible investing options so they can invest in accordance with their financial capabilities and ambitions.
Excellent Interest Rates : These Scheme offer excellent interest rates, making them a desirable investment choice. The rate of Interest on MSSC is fixed at 7.5% p.a and will be compounded quarterly and credited to your Account.
Investment Required : Minimum amount required to invest in MSSC is Rs 1000 and in multiples of 100 rupees may be deposited in an account. The maximum limit of Rs 2 Lakh shall be deposited in a single account or multiple accounts held by an account holder. In short The Minimum Invested amount is Rs 1000 and Maximum is Rs 2 Lakh. Subject to the maximum deposit amount allowed, a person may open as many accounts as they like, but they must wait three months between opening a new account and closing an existing one.
Partial withdrawal : After the first year from the date of account opening but before the account matures, the account holder is permitted to withdraw a maximum of 40% of the Eligible Balance once.
Maturity : Woman Investors will get their eligible sum 2 years after the date of opening. Account Can be opened till 31st March 2025.
Several Accounts : The customer is allowed to open several accounts under this plan, but the second account can only be opened three months after the first account, and so on. However, the total deposit across all accounts shouldn’t be higher than Rs 2 Lacs.
Nomination Facility : There is a nomination Facilty for a maximum of four nominees per account. Guardian can make nomination on behalf of Minor.
Lets have a look on how Mahila Samman Saving Certificate is Calculated
Lets have a look at an Example : Suppose you Invest Rs 200000 under this scheme and the fixed interest rate is 7.5% P.a and also it has a tenure of 2 years. So, in the 1st year you will get an interest of Rs 15000 on the Principal Amount i.e Rs 200000 and in the 2nd year you will get an interest of Rs 16125. Thus by the end of 2 years you will get the maturity amount of Rs 231125.
How to Open an MSSC Account ?
Initially this scheme was only restricted to Post Offices but according to recent notification by the finance Ministry, Mahila Samman Saving Certificate Schemes can be applied in all public Sector banks and 4 private Banks i.e. ICICI Bank, Axis Bank, HDFC Bank and IDBI Bank.
By submitting an application at the branch, women who are both individuals and the guardian of a minor girl may create an account.
Documents that may required to open an MSSC Account :
Mandatory Documents :
- Passport Size Photograph
- PAN Card
- Adhaar Card
Other Optional Documents :
- Driving License
- Passport
- Voter Id card
- Job card issued by NREGA signed by the State Government officer
- Letter issued by the National Population Register containing details of name and address etc
Premature Termination/Closure of Account
The MSSC account is opened for a two-year period, and it cannot be closed before maturity unless in the situations i.e. On the AccountHolder’s Death or On extreme compassionate ground.
Premature closure of an account may be allowed at any time after a period of six months following the date of account opening for any other reason mentioned above in which case the balance remaining occasionally in the account would only be eligible for an interest rate less by Two Percent (2%) than the rate specified by the scheme.
If an investor has a life-threatening illness, she may also choose to have her account prematurely closed. In certain circumstances, interest on the principal amount will be paid.
The Mahila Samman Saving Certificate program is a remarkable effort in India’s push for financial inclusion and women’s empowerment. This program boosts the economy of the country by encouraging savings, financial literacy, and women’s independence. Schemes like Mahila Samman serve as lights of hope, illuminating the route for a more inclusive and empowered society as India continues to advance on its journey to gender equality.
