In a significant move to empower women and girls financially, Finance Minister Nirmala Sitharaman introduced the Mahila Samman Savings Certificate Scheme in the Union Budget 2023-24 back in February. It was deemed as part of the Azadi ka Amrit Mahotsav celebrations on the occasion of India completing its 75th year of Independence. The scheme aims to provide women of all age groups with a safe and lucrative savings option, fostering their financial independence and career growth.
The Mahila Samman Savings Certificate (MSSC) is a two-year programme that commenced in April 2023 and will continue till March 2025. Under this scheme, women can open an MSSC account at a set interest rate with a minimum deposit of Rs 1000 and a maximum deposit of Rs 2 lakhs for a duration of two years.
The Department of Economic Affairs, Ministry of Finance, authorized all Public Sector Banks and four Private Sector Banks to implement and operate the scheme through an e-gazette message on June 27, 2023. Additionally, the scheme was made available in all 1.59 lakh post offices across the country, making it easily accessible to women from various regions.
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To open an MSSC account, interested women investors need to submit an account opening form, along with KYC documents such as an Aadhaar card and PAN card, a photograph, and a KYC form for new account holders. This simplified process aims to encourage more women to participate in the scheme and benefit from its offerings.
The interest rate for the Mahila Samman Savings Certificate is set at 7.5 per cent per annum, compounded quarterly. Notably, the scheme also allows for partial withdrawal and premature closure in case of emergencies or urgent financial requirements. Account holders can request premature closure with a 2% penalty after six months of opening the account. Additionally, after one year, partial withdrawals of up to 40% of the eligible balance are permitted. The maximum interest that can be earned over the two-year period is capped at Rs 32,000.
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Union Minister of State for Finance, Pankaj Chaudhary, shared in a Lok Sabha session that around 14.8 lakh accounts under the Mahila Samman Savings Certificate Scheme have already been opened, with a total deposit of Rs 8,630 crore so far. This encouraging response reflects the growing interest among women in securing their financial future through this exclusive savings scheme.
The Mahila Samman Savings Certificate Scheme is poised to bring about a positive change in the financial landscape for women and girls in India. By encouraging savings and financial planning, the scheme aims to empower women to take charge of their finances, invest in their career growth, and secure a brighter future for themselves and their families.
The scheme’s focus on financial inclusion and women’s empowerment aligns with the larger goal of promoting gender equality and economic independence. With the MSSC, the government aims to bridge the gender gap in financial decision-making and encourage women to actively participate in the country’s economic development.
