Bank of India, one of the largest public sector banks in India, has achieved a significant milestone by becoming the inaugural bank to officially introduce the Mahila Samman Savings Certificate (MSSC) scheme.
This scheme was initially unveiled by Union Finance Minister Nirmala Sitharaman during this year’s Budget speech. With an attractive interest rate of 7.5 percent per annum, compounded quarterly, the MSSC scheme aims to empower individual girls and women financially.
Under the Mahila Samman Savings Certificate scheme, both individual girls or women themselves and guardians on behalf of minor girls can open an account.
The account reaches maturity two years from the date of opening and can be availed until March 31, 2025.According to a recent bank statement, the minimum investment for this scheme is Rs 1,000, while any amount in multiples of Rs 100 can be deposited, up to a maximum limit of Rs 2 lakh.
Individuals have the flexibility to open multiple accounts with a three-month interval between each account, as long as the overall investment cap of Rs 2 lakh is not exceeded.In case of emergencies or at the account holder’s discretion, closure of the account is permissible. However, there is a penalty of 2 percent applicable if the closure occurs after six months from the date of opening.
In such cases, the applicable interest rate will be 5.5 percent. Additionally, after one year from the account opening, account holders can make partial withdrawals up to 40 percent of the eligible balance.
It’s important to note that all earnings under the Mahila Samman Savings Certificate are subject to taxation in accordance with existing income tax provisions. However, the scheme does not deduct TDS (Tax Deducted at Source) from the account.
Bank of India’s MD & CEO, Rajneesh Karanatak, emphasized that the bank has successfully implemented this scheme across all its branches, making it the first bank to do so. Previously, only post offices were authorized to open accounts under the Mahila Samman Savings Certificate scheme.