In a significant development towards empowering women and promoting their financial security, the Department of Economic Affairs, Ministry of Finance, issued an e-gazette notification on June 27, 2023. This notification permits all Public Sector Banks and eligible Private Sector Banks to implement and operationalize the Mahila Samman Savings Certificate, 2023. The move aims to enhance the accessibility of the scheme for girls and women across the country. With this decision, the Mahila Samman Savings Certificate scheme will now be available for subscription in Post Offices and eligible Scheduled Banks, expanding its reach and impact.
Background and Purpose
The Mahila Samman Savings Certificate, 2023 scheme was announced in the Union Budget FY 2023-24 by the Central Government as part of its continuous efforts to secure the political, social, and economic advancement of women in India. The scheme was initially launched on April 1, 2023, through the Department of Post. Its objective is to provide a secure investment option and financial security to every girl and woman in the country.
Key Features of the Scheme
The Mahila Samman Savings Certificate, 2023 scheme offers attractive features and benefits, making it a valuable investment option for girls and women. The key features include:
- Flexible Investment: The scheme allows the opening of an account on or before March 31, 2025, for a tenure of two years. This provides flexibility to individuals to invest according to their convenience and financial goals.
- Interest Rate: Deposits made under the Mahila Samman Savings Certificate (MSSC) will earn interest at a rate of 7.5% per annum, compounded quarterly. This implies an effective interest rate of approximately 7.7%, offering a competitive return on investment.
- Minimum and Maximum Deposit: The scheme allows a minimum deposit of ₹1000, and any amount in multiples of 100 can be deposited within the maximum limit of ₹200,000. This ensures accessibility for individuals with varying financial capacities.
- Maturity and Tenure: The maturity period for investments made under this scheme is two years from the date of opening the account. This tenure provides a suitable investment horizon for individuals seeking short-term financial goals.
- Partial Withdrawal: The scheme allows partial withdrawals during the tenure. Account holders are eligible to withdraw a maximum of up to 40% of the eligible balance in the scheme account, offering liquidity and flexibility in managing financial needs.
Expanding Accessibility
By permitting Public Sector Banks and eligible Private Sector Banks to implement and operationalize the Mahila Samman Savings Certificate, 2023 scheme, the Department of Economic Affairs aims to extend the reach and accessibility of the scheme. With the inclusion of these banks, individuals will have more options and convenience in subscribing to the scheme, enhancing its overall impact and effectiveness.
Promoting Financial Inclusion and Empowerment
The Mahila Samman Savings Certificate, 2023 scheme aligns with the government’s commitment to promoting financial inclusion and empowering women. By offering an attractive investment option with competitive interest rates, the scheme encourages girls and women to save and invest, thereby enhancing their financial security and independence.
The scheme not only provides financial benefits but also instills a savings habit among girls and women, promoting long-term financial planning and stability. It serves as a stepping stone towards economic empowerment and enables women to fulfill their aspirations and achieve financial goals.
