Among the many schemes introduced for women, the Mahila Samman Saving Certificate is one of the major schemes introduced by FM Smt.Nirmala Sitaraman. Therefore, we are going to discuss the MSSC program.
Furthermore, we will discuss the various aspects of the scheme, including eligibility, benefits, application process, and other relevant things. Hence, keep scrolling through the blog!
What is Mahila Samman Saving Certificate Scheme?
Starting with introducing the scheme, the MSSC Program was introduced by the FM, Smt.Nirmala Sitaraman. Besides, the scheme is initiated for two years from April 2023 to March 2025.
Moreover, this is a small saving scheme for women and girls which will offer a maximum deposit facility of up to Rs 2 lakh in the name of women or girls for two years at a fixed interest rate. Therefore, the Mahila Samman Saving Certificate Scheme provides financial cover to women and girls.
Following, under the scheme, an Indian woman, irrespective of age, has the opportunity to open an account and invest. If any guardian is opening an account on behalf of a minor girl, when the minor girl turns 18, ownership and management of the account will be automatically transferred to her. The MSSC Program enables women and girls to save and invest, thus encouraging women’s empowerment.
Overview of the Scheme
| Particulars | Details |
| Name of the scheme | Mahila Samman Saving Certificate Scheme |
| Launched by | Finance Minister, Smt.Nirmala Sitaraman |
| Launched on | April 2023 to March 2025 |
| Benefits | This scheme will offer a maximum deposit facility of up to Rs 2 lakh for two years at a fixed interest rate of 7.5% |
| Beneficiary | Women and Girls |
| Eligibility | Indian Women or GirlMinor girls can also open their accountNo maximum age limit |
| Places to access the form | Post Office and Banks |
Also Read:- Har Ghar Bijli Yojana || National Health Mission || Krishak Bandhu Scheme
How to Open a Mahila Samman Saving Certificate Account?
There are ways of opening your MSSC Program account, i.e., through the bank or post offices. Besides, these accounts will help women to invest with discretion. Here are the mentioned ways through which you can open your account.
Through post office
- Get the ‘Certificate Purchase Application’ by downloading it from the Indian Post’s official website. You may also visit the closest Post Office branch and obtain the form.
- Furthermore, fill out the post office address under the “to the postmaster” section.
- Next, you fill out your name and mention the account as Mahila Samman Saving Certificate.
- Now, fill out the account type, and personal and payment details.
- In the next step, fill out the declaration and nomination details.
- You may submit the form with all the relevant documents.
- Deposit in the Post Office through Cheque or cash.
- Get a certificate to show participation in the Mahila Samman Savings Certificate scheme.
Through Banks
- Visit the bank offering the scheme and ask for the application form.
- Furthermore, start filling up the application form by providing all the necessary details.
- Next, you have to fill out the nomination and declaration.
- Now, submit the form to the respective branch with all the required documents.
- Deposit the amount to the bank officials.
- Get the certificate to show participation in the Mahila Samman Savings Certificate scheme.
Eligibility of the MSSC Program
Certain eligibility requirements must be fulfilled by every candidate wishing to apply for the benefits under the scheme. Besides, not fulfilling these requirements will not be eligible to apply for the scheme. The requirements of the Mahila Samman Saving Certificate are mentioned below.
- The Candidate must be an Indian citizen
- The applicant must be a woman or a girl
- Additionally, no maximum age limit applies to the scheme
- Minor girls can also apply under the scheme, given the fact that it will be opened by the guardians, and after the girl turns 18, the ownership of the account will be transferred to her.
Documents Required to Apply for the Scheme
Here, we have mentioned the essential documents required while applying for the MSSC program. Have a look!
- Photo that fits in passport dimensions.
- Confirmation of age, for example, a Birth Certificate
- PAN Card
- Identification proof, i.e., Aadhaar Card
- Deposit amount or cheque with Pay-in-Slip
Additionally, the following documents will be used for identification and address proof.
- Voter’s ID Card
- Driving License
- Passport
- Besides, the NREGA job card is authorized by a State Government official.
- Document from National Population Register with information about name and residence.
Features of the Mahila Samman Saving Certificate
There are various features of the MSSC Program. It is designed to provide several benefits to the candidate. Therefore, in this part, we have discussed the key features of the scheme.
Deposits
- An individual may open several accounts subject to a maximum limit for deposit. However, the gap of three months is there between the existing and the new accounts.
- An account can be opened with at least ₹1000/- and additional deposits must be in multiples of one hundred rupees with no further deposits permitted.
- An account holder can deposit a maximum of ₹2,00,000 in one or multiple accounts.
Payment on Maturity
- The deposit will reach its maturity after two years from the date it was made, and the account holder may receive the Eligible Balance at that time.
- Besides, when determining the maturity value, any fractional amount in rupees will be rounded to the nearest rupee. Fifty paise or higher will count as one rupee, while amounts less than fifty paise will be disregarded for rounding purposes.
Withdrawal from account
- After one year of account opening and before maturity, the account holder can withdraw up to 40% of the eligible amount from the account.
- Additionally, if a minor girl holds an account her guardians can request a withdrawal on her behalf by furnishing the necessary certificate to the accounts office.
- When determining the withdrawal value, any fractional amount in rupees will be rounded to the nearest rupee. Fifty paise or higher will count as one rupee, while amounts less than fifty paise will be disregarded for rounding purposes.
Also Read:- Sambal Card Registration || Bhulekh Bhubaneswar || Assam Bhulekh
Benefits of the MSSC Program
There are various benefits of the Mahila Samman Saving Certificate. Following, these benefits allow the candidate to invest and save some money. The benefits of the scheme are mentioned below.
- This is a government-backed scheme.
- The scheme provides attractive investing opportunities to women and girls.
- Moreover, the program has two years of tenure.
- The plan provides a 7.5% fixed interest rate compounded quarterly, with flexible investment and partial withdrawal options, capped at ₹2,00,000/-.
- Additionally, this plan allows early withdrawal in specific situations.
- Interest will be compounded quarterly and added to the account.
Banks Offering Mahila Samman Savings Certificate
The Department of Economic Affairs, Ministry of Finance, authorised all public sector banks and qualified private sector banks to operate the Mahila Samman Savings Certificate program through an e-gazette announcement on June 27, 2023. The following is a list of banks offering Mahila Samman Savings Certificate:
- Bank of Baroda
- Bank of India
- Canara Bank
- Central Bank of India
- Punjab National Bank
- Union Bank of India
Mahila Samman Savings Certificate Calculation
The Mahila Samman Savings Certificate (MSSC) is a Government-Certified savings scheme for Women. It’s risk-free and the perfect instrument to earn a guaranteed fixed interest rate of 7.5% per annum.
If you were to calculate the interest on the MSSC interest at quarterly compounded interest, it would be different from the way the interest is applied on the two-year tenor method. This latter interest calculation is simple interest. You can calculate your simple interest by logging the amount of investment for the principal amount and the interest rate and calculating that for two years of investment.
Simple Interest (SI) = (P * R * T)/100, where P = Principal, R = Rate of Interest = 7.5%, T = period of time in years.
For example, if you deposit Rs. 1,00,000, your annual interest will be Rs. 7,500 per year or Rs. 15,000 in total over two years.
While technically accrued interest is compounded quarterly, the total calculation is simple since accrued interest is paid at maturity. Therefore, the Mahila Samman Savings Certificate Scheme is a straightforward, uncomplicated way for women to save and earn interest without complex calculations while receiving a steady return on investment. The MSSC is especially attractive to investors who prefer their investments to be conservative and low risk for the shorter investment period of two years with predictable fixed returns.
Tax Benefits of Mahila Samman Saving Certificate Scheme
Tax Deducted at Source (TDS) does not apply to interest received under the Mahila Samman Saving Certificate Scheme. The Mahila Samman Saving Certificate Scheme was nevertheless notified by CBDT that TDS would be imposed. Only when the interest received from the post office savings plan for a fiscal year surpasses Rs. 40,000 or Rs. 50,000 (for senior citizens) will TDS be applied in compliance with Section 194A of the Income Tax Act. Since interest on a maximum investment of Rs. 2 lakh over two years does not exceed Rs. 40,000, TDS is not deducted on income received under the Mahila Samman Saving Certificate Scheme.
Tax Benefits Under Mahila Samman Saving Certificate Scheme:
• Interest not subject to TDS.
• TDS applies under Section 194A of the Income Tax Act if post office savings plan interest exceeds Rs. 40,000 or Rs. 50,000 (for senior persons).
• TDS not subtracted from income under the scheme as maximum investment amount doesn’t exceed Rs. 40,000.
Premature Closure of Mahila Samman Savings Certificate
After six months from the opening date, a premature closure of a Mahila Samman Savings Certificate (MSSC) is allowed, however, there is a 2% interest rate penalty. Closure may be allowed without penalty in situations involving serious humanitarian considerations, such as the account holder’s death or medical assistance for a life-threatening illness.
Mahila Samman Savings Certificate Scheme Account Premature Closure:
• Account can be terminated before two years, six months after opening, without a valid reason.
• Interest rate of 5.5% applies.
• Interest paid on principal amount upon account holder’s passing.
• Extraordinary humanitarian need arises, like life-threatening illness.
• Interest paid on principal amount upon guardian’s death.
Also Read:- Banglarbhumi.gov.in || Bhulekh Dehradun || Gujarat Bhulekh
Conclusion
Finally, we would like to say that the MSSC Program is an attractive and smart investment for women and girls. Moreover, it offers an opportunity to deposit a maximum of Rs 2 lakh in the name of women or girls for two years with a fixed interest rate of 7.5%.
Following, the Mahila Samman Savings Certificate has several features and benefits, one of which includes that guardians can also open an account on behalf of the minor girls. However, the account ownership will be transferred to the girl once she is 18 years old.
So, this is an insight into the scheme in which we discussed various aspects including eligibility, features, benefits, and much more. Having scrolled till here, we hope you found this blog helpful!
FAQs
1. Is the scheme tax-free?
Ans. The plan’s earned interest is subject to taxation. This means, that unlike tax-saving fixed deposits, you will not get any tax benefits. Income generated from the interest of the Mahila Samman Savings Certificate is subject to tax and is not eligible for exemption. TDS will vary based on the total interest income and individual tax brackets.
2. Is there a feature of premature closure of the account in the scheme?
Ans. Yes, candidate can prematurely close their account under specific circumstances, such as the passing away or wedding of the account holder, due to health issues. Nevertheless, a fee must be paid for withdrawing the amount early.
3. What banks offer Mahila Samman Savings Certificates?
Ans. There are a few banks that provide savings certificates – Bank of Baroda, Canara Bank, Bank of India, Punjab National Bank, Union Bank of India, and Central Bank of India.
4. What is the maximum number of MSSC accounts to be opened?
Ans. There is no limit on the number of MSSC accounts. However, there is a limit i.e., only one deposit is allowed in one account.
