The government vide Notification No. G.S.R.237(E) dated 31.03.2023 has notified Mahila Samman Savings Certificate, 2023 (MSSC) under the Government Savings Promotion Act, 1873.
The scheme of Mahila Samman Savings Certificate, 2023 is effective from 01.04.2023.
Finance Minister while presenting the Union budget for 2023-24 in her budget speech announced that for commemorating Azadi Ka Amrit Mahotsav, a one-time new small savings scheme, Mahila Samman Savings Certificate, will be made available for a two-year period up to March 2025.
This will offer a deposit facility upto Rs. 2 lakh in the name of women or girls for a tenor of 2 years at fixed interest rate of 7.5 per cent with partial withdrawal option.
As per the announcement, the government has now notified the Mahila Samman Savings Certificate, 2023 on 31.03.2023.
Features of Mahila Samman Savings Certificate
The salient features of Mahila Samman Savings Certificate are as follows-
No Credit risk- Mahila Samman Savings Certificate scheme is a small savings scheme backed by the government. Hence, it does not have any credit risk.
Eligibility- The Mahila Samman Savings Certificate can be purchased only by a woman or in the name of a minor girl child.
Deposit amount- The minimum amount of deposit is Rs. 1,000 and the maximum amount of deposit under this MSSC scheme is Rs. 2,00,000.
Maturity- An account under the MSSC scheme can be opened from 01.04.2023 to 31.03.2025 only. This is a one-time scheme.
Rate of interest- The interest rate under Mahila Samman Savings Certificate, 2023 is fixed at 7.5% per annum compounded quarterly. Hence, the annualized yield comes to 7.71%. It is a fixed interest-rated scheme.
Cumulative interest- the interest will be reinvested and will be paid at the time of maturity. No monthly or quarterly or other periodic interest payment is allowed.
Partial withdrawal- Partial withdrawal is allowed after the completion of one year. Upto 40% of the eligible balance can be withdrawn.
Premature closure of account- Premature closure i.e. closure before the maturity period is allowed only in exceptional circumstances.
Tax Benefits- No tax benefit on making an investment in Mahila Samman Savings Certificate is announced. As per general rules, the interest income on this scheme shall become taxable.
The Ministry of Communications has issued a Press Release dated 01.04.2023 which reads as follows-
In a late night development, Ministry of Finance issued the Gazette Notifications for Mahila Samman Savings Certificates, 2023 and has been made available in 1.59 lakh post offices with immediate effect. The scheme was announced in the 2023-24 Budget by the Union Finance Minister to commemorate ‘Azadi Ka Amrit Mahotsav’ and is a significant step towards financial inclusion and empowerment of the women, including the girls.
The two year tenure scheme offers an attractive and fixed interest of 7.5 per cent interest compounded quarterly with flexible investment and partial withdrawal options with a maximum ceiling of ₹ two lakh. The scheme is valid for a two-year period upto 31st March 2025.
National Savings (Monthly Income Account) Scheme, 2019 has been amended through National Savings (Monthly Income Account) (Amendment) Scheme, 2023 and the maximum investment limit has been raised from ₹ four lakh fifty thousand to ₹ nine lakh for a single account and from ₹ nine lakh to ₹ 15 lakh for a joint account with effect from 1st April 2023. Likewise, Senior Citizen Savings Scheme, 2019 has been amended through Senior Citizens Savings (Amendment) Scheme, 2023 and the maximum investment limit has been raised from ₹ 15 lakh to ₹ 30 lakh with effect from today.
Interest rates on all the small savings schemes, except Savings Deposit and PPF, have also been upwardly revised with effect from 1st April 2023. These measures will immensely benefit the post office small savings customers and attract more investment in these schemes through post offices, especially in rural areas and amongst girls, women, farmers, artisans, senior citizens, factory workers, government employees, small traders and other sections of the society. They will get better return on their investment in small savings schemes. For further details, please visit www.indiapost.gov.in.
Read the full text of Mahila Samman Savings Certificate, 2023 scheme here.
Update:
Government Authorizes Banks to implement and operationalise Mahila Samman Savings Certificate, 2023
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