MAHILA SAMMAN SAVINGS CERTIFICATE(MSSC)

Overview of Mahila Samman Savings Certificate scheme: 

The Mahila Samman Savings Certificate (MSSC) scheme is a new initiative taken by the Government for women and girl children. The Mahila Samman Savings Certificate is a 2 years deposit scheme, which offers an interest rate of 7.5% per annum. The scheme is valid for two years period up to March 31, 2025.

All women and girl children are eligible to open Mahila Samman Savings Certificate scheme account, which can be opened for herself or by a guardian (female or male) on behalf of a minor girl. Under this scheme, a single account holder can make a cumulative deposit of Rs 2,00,000 – either at one time or in phases where a minimum time gap of three months shall be maintained between the existing account and the opening of other account.

Smt. Nirmala Sitharaman, the Union Finance Minister, announced the Mahila Samman Savings Certificate (MSSC) in her Budget Speech 2023-24. It is a small savings scheme for women and girls. The Mahila Samman Savings Certificate was announced to commemorate the Azadi Ka Amrit Mahotsav.

Table of Contents:

1. Objectives
   1. Features
   1. Benefits
   1. How to open MSSC account
   1. Documents required

2.0 FAQ

Objectives of Mahila Samman Savings Certificate scheme:

The Government of India intends to encourage the women and the girls to invest for saving. The Mahila Samman Savings Certificate is a tax-free scheme. There is no tax deduction under section 80C. The Mahila Samman Savings Certificate is a risk-free scheme dedicated to women and girls of all age groups.

Features of Mahila Samman Savings Certificate scheme:

Below are the features of Mahila Samman Savings Certificate scheme.

• The Mahila Samman Savings Certificate is designed to women and girl children only.
• The Mahila Samman Savings Certificate is a two years Term Deposit Scheme.
• The minimum deposit amount under the Mahila Samman Savings Certificate is Rs. 1,000 in multiples of Rupees one hundred. The maximum deposit limit is Rs. 2,00,000 in one account or all Mahila Samman Savings Certificate accounts held by an account holder.
• Partial withdrawal up to 40% is permitted once after the expiry of one year from the date of opening of the account.
• Premature closure permitted, after completion of six months from account opening in which case interest paid @ less by 2% than the rate specified for this scheme.
• Mahila Samman Savings Certificate is a small savings scheme backed by the government. Hence, there is no any credit risk.
• The Mahila Samman Savings Certificate can be done in the name of women or girl children. A women or guardian(male/female) on behalf of minor girl can open the Mahila Samman Savings Certificate.
• An individual can open any number of accounts but it should be a time gap of 3 months from previous account opening date up to maximum limit of Rs 2,00,000.
• Mahila Samman Savings Certificate scheme is valid till 31.03.2025.

Mahila Samman Savings Certificate in brief:

Benefits of Mahila Samman Savings Certificate scheme:

The Mahila Samman Savings Certificate scheme is exclusively for female of all age group. The Government of India has designed this scheme to encourage the female to invest and save money for their future.  The Government launched this scheme to financially strengthen the female people. There is 7.5% p.a. rate of interest in this scheme. The interest is compounded quarterly. The rate of interest may change as per Govt. of India guidelines.

How to open Mahila Samman Savings Certificate account:

Women and guardians(male/female) of girl children can open a Mahila Samman Savings Certificate scheme account at post offices and qualified scheduled banks.

For opening Mahila Samman Savings certificate at post offices, certain steps are to be follow.

• Download the ‘Application for purchasing the certificate’ from the official Indian Postal website. You may also visit the nearest post office branch and get the form.
• Fill out the post office address under the ‘To the Postmaster ’section.
• Fill in your name in the given space and mention the account as ‘Mahila Samman Savings Certificate’.
• Fill in personal information and account details.
• Fill out the declaration and nomination details.
• Submit the form along with required documents.
• Make payment as deposit in the post office through cheque or cash.
• Get the certificate as proof of investment in the Mahila Samman Savings scheme.

The Department of Economic Affairs, Ministry of Finance authorized all public sector banks and qualified private sector banks to operate the Mahila Samman Savings Certificate scheme. Following are the qualified banks offering the Mahila Samman Savings Certificate scheme as follows:

• Punjab National Bank
• Central Bank of India
• Union Bank of India
• Canara Bank
• Bank of Baroda
• Bank of India

For opening Mahila Samman Savings Certificate at banks, certain steps are to be follow.

• Download the ‘Mahila Samman Savings Certificate Application’ from the qualified bank’s official website or by visiting the nearby branch office of the bank.
• Fill out the required details on the application form.
• Fill out the declaration and nomination details.
• Submit the form to the bank’s branch office with required documents.
• Deposit the scheme account opening amount to the bank officials.
• Get the certificate as proof of investment in the Mahila Samman Savings scheme.

Documents required for Mahila Samman Savings Certificate scheme:

Below are the documents required for opening Mahila Samman Savings Certificate account.

• Application form
• Aadhar card, PAN card, Voter ID and Driving license as KYC documents.
• KYC form for new account holders.
• Pay-in-slip along with deposit amount or cheque.

FAQ:

What is Mahila Samman Savings Certificate?

Mahila Samman Savings Certificate is a Government scheme announced by Union Finance Minister, Smt. Nirmala Sitharaman in her Budget speech 2023-24.

This is a small saving scheme designed to the female people of all age group.

What is the interest rate for Mahila Samman Savings Certificate?

The interest rate for the Mahila Samman Savings Certificate is 7.5%.

What is the amount limit of Mahila Samman Savings Certificate?

              The minimum limit of the scheme is Rs 1,000  and the maximum limit is Rs 2,00,000.

What is the tenure of the scheme?

              The duration of Mahila Samman Savings Certificate is 2 years.

Is the Mahila Samman Savings Certificate scheme a tax free?

              Yes, there is no tax deduction under section 80C.

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