Mahila Samman Saving Certificate To Be Available In All PSBs, 4 Private Banks

The Finance Ministry announced that all public sector banks and some private banks, including ICICI Bank, Axis Bank, HDFC Bank Ltd, and IDBI Bank, are now authorised to avail of the MSSC scheme

The Mahila Samman Saving Certificate is a one-time savings scheme introduced by the government in Budget 2023-24 to encourage women to invest.

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Opening Mahila Samman Saving Certificate (MSSC) accounts has now become more convenient, as the scheme is no longer limited to post offices. The Finance Ministry via a notification on Wednesday announced that all public sector banks and some private sector banks, including ICICI Bank, Axis Bank, HDFC Bank Ltd, and IDBI Bank, are now authorised to accept applications for the MSSC scheme, reported Business Today.

This move expands the accessibility of the scheme, which was introduced in the Union Budget this year.

According to the official gazette notification dated June 27, 2023, “The Central Government hereby specifies that all public sector banks and ICICI Bank, Axis Bank, HDFC Bank Ltd. and IDBI Bank shall be authorised to operate the Scheme namely, Mahila Samman Savings Certificate, 2023 with effect from the date of publication of this notification in the Official Gazette.”

As per the report, the notification further said the authorisation to operate the scheme is subject to a few conditions. These conditions include having dedicated software for the operation and accounting of National Savings Schemes, including specific functionality for each scheme. Banks are also required to offer the scheme through online mode in all branches.

The notification also said that all remittances should be credited to the Government Account at the RBI within specific timeframes. A penalty will be imposed on banks for delays in remittances beyond the mentioned period. The penalty will be equal to the depositor's interest rate plus an additional percentage for the duration of the delay.

Additionally, banks must report various transactions under proper codes to the Reserve Bank of India, and failure to do so may result in penalties imposed by the Ministry of Finance. Banks are also required to declare in advance the list of branches that will not operate any National Savings Schemes. Furthermore, each bank is obligated to provide periodic reports and necessary information to the Central government regarding deposits, subscriptions, and withdrawals under the MSSC scheme, the notification said.

Banks have also been asked to manage and offer the scheme via online mode in all branches. All remittances shall be credited to the Government Account at the RBI, Central Accounts Section, Nagpur, within one day in the case of Core Banking Solution branches, and three days in the case of non-Core Banking Solution branches. 

What Is Mahila Samman Saving Certificate Scheme

The Mahila Samman Saving Certificate is a one-time savings scheme introduced by the government in Budget 2023-24 to encourage women to invest. The scheme offers a fixed interest rate of 7.5 per cent per year and has a flexible investment and partial withdrawal options, with a maximum limit of Rs 2 lakh.

To open an account under the scheme, women or their guardians on behalf of minor girls can apply with the required documents such as PAN cards, Aadhaar cards, and a cheque for the deposit amount at designated banks or post offices.

The minimum investment amount is Rs 1,000, while the maximum amount is Rs 2 lakh per financial year. Premature withdrawal is allowed after one year with some nominal penalty charges. Individuals can open multiple accounts within the maximum deposit limit of Rs 2 lakh, with a time gap of three months between each account.

The maturity date of the scheme is two years from the deposit date. Account holders can make a partial withdrawal of up to 40 per cent of the eligible balance after one year from the opening date, subject to specific withdrawal procedures for minor girl accounts.