Now Mahila Samman Saving Certificate Account Can Be Opened in Private Sector Bank, Know the List of Banks

Mahila Samman Saving Certificate

The government has expanded the scope of small savings schemes by allowing private sector banks to offer the Mahila Samman Savings Certificate (MSSC).

This move aligns the MSSC with other small savings schemes that are already available through various banks.

A notification issued by the Ministry of Finance highlights that public sector banks, as well as certain private sector banks such as ICICI, Axis, HDFC, and IDBI Bank, can now facilitate investments in the Mahila Samman Savings Patra.

Previously, small savings schemes like the Public Provident Fund (PPF) and Sukanya Samriddhi Yojana (SSY) were already accessible through private sector banks.

The recent notification extends this provision to include the Mahila Samman Savings Certificate, providing more options and convenience for investors.

The Mahila Samman Savings Certificate is specifically designed to promote savings among women and empower them financially.

By allowing private sector banks to offer this scheme, the government aims to enhance accessibility and cater to a broader range of investors.

This decision allows individuals to open MSSC accounts not only with public sector banks but also with select private sector banks, thereby expanding the choices available to potential investors.

It’s important to note that the inclusion of private sector banks in offering small savings schemes like the MSSC signifies the government’s efforts to foster financial inclusion and provide a wider range of banking services to individuals across different banking institutions.

This expansion may increase competition among banks, potentially leading to improved customer service and enhanced product offerings in the small savings segment.

Government Issued Notification

According to the notification issued by the government, the Finance Ministry has provided instructions to banks regarding the Mahila Samman Saving Certificate.

The notification states that banks must have dedicated software to manage the accounts and operations related to the certificate. Additionally, the software should include specific functionalities for each scheme offered.

The government mandates that the banks enable online access for all the schemes, allowing customers to conveniently operate their accounts through digital platforms.

Furthermore, the software should be equipped with a comprehensive solution for all core banking services, ensuring that customers can access a wide range of banking facilities at branches.

This notification emphasizes the government’s commitment to empowering women and promoting financial inclusion through the Mahila Samman Saving Certificate.

By implementing the recommended software and online capabilities, banks can effectively streamline the management of the certificate and provide enhanced banking services to women beneficiaries.

What is Mahila Samman Savings Certificate, 2023 (MSCC)?

The Mahila Samman Savings Certificate (MSCC) is a scheme introduced as part of the budget for the fiscal year 2023-24.

Its primary objective is to commemorate the ‘Amrit Mahotsav of Independence’ and to enhance the financial well-being of women, including girls.

The MSCC scheme is designed to encourage women to save and invest their money in a secure and beneficial manner.

It offers women an opportunity to deposit a certain amount of money into a savings certificate, which will then yield returns over a specific period of time.

By participating in this scheme, women can not only secure their savings but also earn additional income through interest accrual.

The introduction of the MSCC scheme reflects the government’s commitment to women empowerment and financial inclusion.

By providing women with a dedicated savings platform, the scheme aims to improve their economic independence and contribute to their overall financial growth.

This initiative recognizes the vital role women play in society and seeks to provide them with a secure avenue for wealth creation and financial stability.

Minimum and Maximum Investment

The Mahila Samman Savings Certificate (MSSC) scheme sets specific guidelines regarding the minimum and maximum investment amounts, account opening intervals, and withdrawal policies. Here are the details:

1. Minimum Investment Amount: The minimum investment amount in the MSSC scheme is Rs 1000. Investors are required to deposit at least Rs 1000, and subsequent investments should be made in multiples of 100.

2. Maximum Investment Limit: The scheme imposes a maximum investment limit of Rs 2 lakh per account. Investors cannot deposit more than Rs 2 lakh in a single MSSC account.

3. Account Opening Interval: If an individual already has an MSSC account and wishes to open another account, there must be a minimum gap of at least 3 months between the two account openings. This ensures that investors have enough time to manage their existing accounts before opening a new one.

4. Withdrawal Policy: Under the MSSC scheme, investors are allowed to withdraw up to 40% of the deposited amount after one year of opening the account.

This means that after the completion of one year, account holders can withdraw a portion of their funds while keeping the remaining amount invested to continue earning interest.

These provisions regarding investment limits, account opening intervals, and withdrawal policies are put in place to regulate the scheme effectively and ensure a fair and balanced approach to investment and savings for participants.

It allows investors to have flexibility in managing their funds while maintaining the integrity and sustainability of the MSSC scheme.

Get This Much Interest

Under the Mahila Samman Savings Certificate (MSSC) scheme, investors can expect an interest rate of 7.5% per annum.

The interest earned is credited to the account on a quarterly basis. Upon maturity, investors receive both the principal amount and the accumulated interest.

If an individual invests Rs 2 lakh in the MSSC scheme for a duration of 2 years, they can expect to receive a total amount of Rs 2.32 lakh on maturity. This includes the initial investment of Rs 2 lakh as well as the interest earned over the 2-year period.

The MSSC scheme operates in a manner similar to a Fixed Deposit (FD) where investors receive a fixed interest rate on their investment.

The interest is compounded quarterly, allowing the investment to grow steadily over time. On maturity, investors receive the full principal amount along with the accrued interest, resulting in a higher total payout.

It is important to note that the interest rate and maturity amount mentioned here are based on the specific terms of the MSSC scheme as described in the question.

These figures may vary depending on any changes or revisions made to the scheme by the government.

It is always advisable to refer to the latest official information or consult with financial institutions for accurate and up-to-date details regarding the MSSC scheme.