Bank of India (BoI) has achieved a significant milestone by becoming the first bank in India to offer the Mahila Samman Savings Certificate (MSSC) account opening facility at all its branches across the country. On July 4, BoI officially launched the Mahila Samman Savings Certificate, 2023.
Rajneesh Karnatak, MD and CEO of Bank of India expressed his pride in the bank being the first to operationalize this scheme at all its branches, authorizing them to open accounts under the Mahila Samman Savings Certificate, 2023.
The Mahila Samman Savings Certificate was announced by Finance Minister Nirmala Sitharaman during the Budget speech for the fiscal year 2023-2024 on February 1, 2023.
What is the Mahila Samman Savings Certificate?
Under this scheme, individual girls or women can open a Mahila Samman Savings Certificate or a guardian can open an account on behalf of a minor girl. The minimum investment required is Rs 1000, and deposits can be made in multiples of Rs 100, up to a maximum limit of Rs 200,000. Individuals can open multiple accounts with a gap of three months between each account, subject to the overall investment cap of Rs 2,00,000.
No TDS Deduction
According to a press release by Bank of India, deposits made under this scheme will earn an attractive interest rate of 7.5% per annum, which will be compounded quarterly and credited to the account. All earnings from the Mahila Samman Savings Certificate will be taxable as per existing income tax provisions. However, no Tax Deducted at Source (TDS) will be deducted under this scheme.
The account matures two years from the date of opening, and accounts can be opened under this scheme until March 31, 2025. The scheme also provides a nomination facility.
Premature Closure
In the unfortunate event of the account holder’s death, the account can be closed prematurely. Premature closure is also allowed in cases of extreme compassionate grounds, such as life-threatening diseases of the account holder or the death of the guardian, where the account’s operation or continuation causes undue hardship to the account holder.
In the case of premature closure under the aforementioned conditions, the interest on the principal amount will be payable at the rate applicable to the scheme, i.e., 7.5%.
Account closure can also be requested by the customer in case of emergencies or at their discretion, subject to a penalty of 2% after six months from the date of account opening, and the applicable interest rate will be 5.5%. Account holders can also make partial withdrawals, up to 40% of the eligible balance, after one year from the date of opening the account.
Previously, only post offices were authorized to open accounts under the Mahila Samman Savings Certificate. However, the government has now allowed scheduled banks to offer this facility through a gazette notification dated June 27, 2023. Bank of India is the first bank to roll out this scheme, empowering women across the country to take advantage of this unique savings opportunity.
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