The Union Finance Minister, Smt. Nirmala Sitharaman, announced the Mahila Samman Savings Certificate, a new small savings scheme for women and girls, in her Budget Speech 2023–24.
The Mahila Samman Savings Certificate is a one-time scheme which will be available for two years, starting from April 2023 to March 2025. As the scheme will continue for 2 years, the Maximum deposit of up to Rs.2 lakh in the name of women or girls for two years at a fixed interest rate will be offered.
Features of the Mahila Samman Savings Certificate
Below are some of the features of the Mahila Samman Savings Certificate Scheme:
The Mahila Samman Savings Certificate Scheme is a savings scheme backed by the government. Therefore, it won’t have any credit risk.
Eligibility
The Mahila Samman Savings Certificate is only for women that means only girls and women are eligible for this. A woman or the guardian of a minor girl child can open a Mahila Samman Savings Certificate scheme in their name or their daughter’s name.
Deposit Limits
In Mahila Samman Savings Certificate scheme the minimum deposit amount is Rs. 1,000 in notes of Rs. 100. 2 lakh rupees in one account or all the other Mahila Samman Savings accounts held by a single person. A second account can only be opened by a woman or guardian of a girl child after a minimum gap of three months from the opening of the existing account.
Maturity
The maturity period of this scheme is around two years. That means after two years from the account opening date the maturity amount will be paid to the account holder.
Withdrawal
A partial withdrawal facility is provided under the Mahila Samman Savings Certificate scheme. After one year from the account opening date the account holder can withdraw up to 40% of the account balance.
Interest Rate of the Mahila Samman Savings Certificate
It has a fixed interest rate of 7.5% per annum
Benefits of the Mahila Samman Savings Certificate Scheme
- Mahila Samman Savings Certificate scheme is a government-backed scheme; hence, it is a safe option for investment.
- It provides a high interest rate of 7.5% p.a., making it a good investment option for girls and women.
- The scheme tenure is just 2 years.
- Pre-mature withdrawal is an option in certain circumstances.
- This scheme intends to help women and girls grow their wealth and become financially independent.
Premature Closure of the Mahila Samman Savings Certificate
- The Mahila Samman Savings account can be closed before two years in case of the following situations:
- After six months of opening the account without giving any reason, In such a case, an interest rate of 5.5% will be given.
- On the death of the account holder. The interest will be paid as per the principal amount.
- In the case of an extreme compassionate ground, such as:
A life-threatening disease of the account holder.
Death of the guardian upon production of relevant documents. In cases like this the interest will be paid on the principal amount.
Opening of the Mahila Samman Savings Certificate at the Post Office:
- Download the ‘Application from the official Indian Post website. You can also visit the nearest post office branch to get the form.
- Fill out the address of Post Office under the section of ‘To Postmaster’.
- Fill in your name and mention the account as ‘Mahila Samman Savings Certificate’.
- Fill out the account, payment, and personal details.
- Fill out the declaration and nomination details.
- Submit the form with the required documents.
- Deposit at the post office with cash or a check.
- Take the certificate as proof of investment in the Mahila Samman Savings Certificate scheme.
Opening of Mahila Samman Savings Certificates at Banks
- Visit your nearest bank offering this scheme and get a Mahila Samman Savings Certificate application.
- Fill out the required details on the application form.
- Fill the declaration and nomination details.
- Submit the form along with the required documents with the bank.
- Receive the certificate that serves as proof of investment in the Mahila Samman Savings Certificate scheme.
Documents Required for the Mahila Samman Savings Certificate Account
- Application form
- Aadhaar card, voter ID, driving license, and PAN card for KYC
- KYC form for new account holders
- Pay-in-Slip along with deposit amount or check
