The Mahila Samman Savings Certificate, 2023, is a one-time small savings scheme introduced to commemorate the Azadi Ka Amrit Mahotsav. The Scheme allows women and girls of all age groups to make deposits for a tenor of two years, with the option of investing up to Rs. 2 lakhs. The Scheme offers a fixed interest rate of 7.5%. This Scheme aims to encourage women and girls to save and invest. It’s worth noting that the account opened under this Scheme should be in the name of a single holder.
Features of Mahila Samman Savings Certificate, 2023
Below are the key features of the Mahila Samman Savings Certificate, 2023:
1. Account Opening Application
- Applicant: The account should be opened by the woman herself or the guardian on behalf of a minor girl. The applicant must submit the account opening application in Form – I to the designated Account Office. The deadline for applying is March 31, 2025.
- Single Holder Account: Each account opened under the Mahila Samman Savings Certificate scheme will be of the single holder type. The applicant will hold the account solely, ensuring a simplified and individualized account structure.
2. Deposits
- Number of Accounts: Under this scheme, an individual can open multiple accounts. However, two conditions must be followed.
First, waiting at least three months before opening another account is essential for a suitable time gap.
Second, the maximum limit for deposits should not be exceeded. - Minimum Deposit: The account opening requires a minimum deposit of Rs. 1000. Subsequently, additional deposits can be made in multiples of Rs. 100.
- Maximum Deposit Limit: The total amount deposited by an account holder across one or multiple accounts should not exceed Rs. 200,000.
3. Interest and Compounding Frequency
- Interest Rate: This scheme offers an impressive fixed interest rate of 7.5% per annum, surpassing the returns usually offered by bank Fixed Deposits (FDs) and other popular small savings schemes.
- Compounding Frequency: Interest will be compounded quarterly.
4. Payment on Maturity
The deposit made under this Scheme will mature upon completion of two years from the date of deposit.
5. Withdrawal from Account
- Withdrawal Eligibility: Under the Mahila Samman Saving Certificate scheme, account holders can withdraw partially, permitting them to withdraw up to 40% of the account balance one year after the opening date.
- Withdrawal on Behalf of a Minor Girl: The guardian is permitted to make withdrawal requests for a minor girl. The application should be accompanied by a certificate stating that the withdrawn amount is required for the use and welfare of the named minor girl, who is alive on the specified date.
6. Premature Closure of Account
- Grounds for Premature Closure: The account can be closed before maturity in the following cases:
(a) On the death of the account holder.
(b) In cases of extreme compassionate grounds, such as the account holder’s life-threatening disease or the death of the guardian, where the operation or continuation of the account causes undue hardship. - Interest on Premature Closure: If the account is closed ahead of schedule according to the mentioned conditions, the interest on the principal amount will be compensated at the applicable rate of the Scheme.
- Other Reasons for Premature Closure: Premature closure of an account may also be permitted anytime after six months from the opening date for reasons other than those mentioned in point (1). In such situations, the remaining balance in the account will earn interest at a rate of 2% lower than the rate mentioned in the Scheme.
Final Words
In conclusion, the Mahila Samman Savings Certificate is a groundbreaking initiative to empower women and promote financial inclusion in India. This dedicated small savings scheme gives women and girls unique opportunities to save, invest, and secure their financial future. With its attractive interest rate, flexible withdrawal options, and the option of premature closure under specific circumstances, the Scheme offers women the tools to achieve their financial goals and overcome unforeseen challenges.
By embracing this Scheme, women nationwide can embark on a path towards economic independence, ensuring a brighter and more prosperous future.