Bank of India is the first public sector bank to launch the Mahila Samman Savings Certificate, 2023. According to a press release from Bank of India, it is the first bank to operationalise this scheme at all its branches.
Mahila Samman Savings Certificate was previously only available through post offices.
The Department of Economic Affairs, Ministry of Finance, through an e-gazette notification issued on June 27, 2023 permitted all Public Sector Banks and eligible Private Sector Banks to implement and operationalise the Mahila Samman Savings Certificate, 2023.
This flagship program was introduced by Finance Minister Nirmala Sitharaman during the Budget speech for FY 2023–2024 on February 1, 2023.
Mahila Samman Savings Certificate, 2023
A women individually can open a Mahila Samman Savings Certificate or a guardian can open an account on behalf of a juvenile girl, or girls.The minimum investment required is Rs. 1000, and deposits up to Rs. 200,000 can be made in multiples of Rs. 100. Subject to the aggregate investment ceiling individuals can open several accounts with a three-month interval between each account.
Mahila Samman Savings Certificate interest rate
The scheme offers an impressive 7.5% annual interest return on deposits, which is compounded and credited to the account every quarter. According to current income tax regulations, all earnings under the Mahila Samman Savings Certificate will be taxed. The plan does not, however, allow for the deduction of TDS (Tax Deducted at Source).
Mahila Samman Savings Certificate maturity
The account will mature two years after it is started, and accounts under this system can be opened until 31 March 2025.
Premature closure Mahila Samman Savings Certificate
The account can be closed prematurely in the event of the account holder’s death. Premature closure is also available in circumstances of extreme compassion, such as the account holder’s life-threatening illness or the death of the guardian, if the operation or continuation of the account causes excessive hardship to the account holder. In the event of an early closure under the aforementioned circumstances, interest on the principal sum will be due at the scheme’s standard rate of 7.5%.
Account closure
After six months from the day the account was opened, the customer may also request account closure with a 2% penalty or at their discretion. The appropriate interest rate will then be 5.5%.
Partial withdrawal
After one year from the date of account opening, account holders can make partial withdrawals of up to 40% of the eligible balance.
Source By: economictimes
