Last updated on October 9th, 2023 at 01:01 pm
Government of India introduced Mahila Samman Savings Certificate Scheme in Union Budget 2023 in Februrary. This scheme is a small savings scheme curated for Woman and Girls of all ages.
The scheme is available for subscription from April 1, 2023 to March 31,2025 for the period of two years. This is an one time opportunity provided for woman investors.
The Scheme provides higher interest return in a short maturity term. The objective of the scheme is to increase the active participation of woman in investment plans.
Read this article completely to understand the scheme before investing.
What is Mahila Samman Savings Certificate (MSSC)?
MSSC is a short term small savings scheme created for woman. The scheme provides maximum interest rate compared to the other savings schemes available in the market.
The scheme comes with the following features makes it outstanding among other savings schemes.
Eligibility
MSSC is available only for woman investors subject to the following criterias
- An Applicant should be an Indian Citizen while opening the account.
- A woman can open account for herself and the account can also be opened by Guardian on behalf of a Minor girl child.
- The account is a Single holder type, Thus you can not open a joint account under this scheme.
- One person can open and operate more than one account under this scheme subject to the condition that the deposit all account together shall not exceed the maximum limit of 2 lakh.
How to Open MSSC Account
MSSC accounts can be opened at Post Office, Public Sector Banks and some Private bank including HDFC, ICICI, Axis Bank a nd IDBI.
Thus visit the nearest Post Office/Bank Branch near you and request for the MSSC application.
Fill out the form and submit the application form with the required documents.
Documents Required for MSSC Account Opening
To open a account under the MSSC scheme, the applicant should provide the following Identity Documents.
- Aadhaar Card issued by Unique Identification Authority of India. If applicant does not have Aadhaar Card, she can open the account with proof of Aadhaar Enrollment.
If proof of enrollment is provided, the Aadhaar number should be provided to the bank within 6 months of Account opening otherwise the account will be freezed till submission of Aadhaar.
- Permanant Account Number (PAN) or Form 60.
- Passport Size Photograph the applicants.
Deposit Rules
- An individual can open any number of accounts subject to the maximum limit for deposit under the scheme (Ref Rule 5).
- There should be time gap of 3 months between opening of existing account and the new account.
- The minimum deposit amount is Rs. 1000 and in multiple of 100 thereof. But you can not make multiple deposit in the same account.
- Thus you can make one deposit under one account, for making a second deposit you have to open a new account.
- The maximum deposit limit is Rs. 2 Lakh for an individual including all the accounts opened in the scheme.
Interest Rate
Deposit made under the scheme Mahila Samman Savings Certificate (MSSC) bears interest at the rate of 7.5% per annum.
The interest is Compounded and added to the account balance quarterly.
Maturity Benefits
MSSC is a short term investment option with the maturity period of 2 years from the date of deposit.
On maturity the amount in the MSSC account will be transferred to the operative account.
Cash Withdrawal from Account
The applicant can withdraw maximum of 40% of the deposited amount of the eligible balance.
The withdrawal from the account is allowed only after the expiry of 1 year from the date of account opening.
In the case of minor account the request for withdrawal can be given by the guardian.
Premature Closure of MSSC
Pre closure of MSSC account before maturity is only allowed in the following cases.
- On the death of the account holder.
- On the extreme compassionate ground on the medical ground of the applicant or on the death of the Guardian etc.
In the above two cases the account is closed without any penalty and the interest is paid fully for the invested period at the termed interest rate.
- The account can be closed for any other reason after completion of 6 months from the date of account opening. But the interest paid is 2% less than the scheme specification.
Conclusion
Mahila Samman Scheme is a special one time opportunity for the woman investors. It provides best interest rate compared with the other short term deposits available in the market.
As it is backed up by the Government it is a safe mode of investment for the investors with low risk appetite. It is simple process to open MSSC account.
It is better option of savings scheme for the woman at the moment.