Mahila Samman Saving Certificate (MSSC)
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Context
- Prime Minister Narendra Modi urged women to enroll in Mahila Samman Saving Certificate (MSSC).
- The Mahila Samman Saving Certificate, 2023, is available from 01/04/2023 in the Post Offices at an interest rate of 7.5% p.a.
Details
Announcement
- The Union Finance Minister, Smt. Nirmala Sitharaman announced Mahila Samman Saving Certificate in her Budget Speech 2023-24.
- The Mahila Samman Savings Certificate scheme was announced to commemorate the Azadi ka Amrit Mahotsav.
About
- It is a new small savings scheme for women and girls.
- The scheme is offered by the Indian Post Office and can be availed at any post office across India.
Availability
- The Mahila Samman Savings Certificate is a one-time scheme available for two years, from April 2023-March 2025.
Deposit Facility
- It 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.
Features of Mahila Samman Savings Certificate
Government-Backed Scheme
- Mahila Samman Savings Certificate scheme is a small savings scheme backed by the government. Hence, it does not have any credit risk.
Eligibility
- The Mahila Samman Savings Certificate can be done only in the name of a girl child or woman.
- A woman or the guardian of a minor girl child can open a Mahila Samman Saving Certificate scheme.
Deposit Limits
- The minimum deposit amount under the Mahila Samman Savings Certificate is 1,000 in multiples of rupees one hundred.
- The maximum deposit amount is 2 lakh in one account or all Mahila Samman Savings Certificate accounts held by an account holder.
Can the investment be made jointly?
- Yes, the investment can be made jointly. Joint account holders can be any two adults.
Second Mahila Samman Savings Certificate
- A woman or guardian of a girl child can open a second Mahila Samman Savings Certificate account after a minimum gap of three months from the opening of the existing account.
Maturity
- The maturity period of the Mahila Samman Savings Certificate account is two years.
- Thus, the maturity amount will be paid to the account holder after two years from the account opening date.
Withdrawal
- A partial withdrawal facility is provided under the Mahila Samman Saving Certificate scheme.
- The account holder can withdraw up to 40% of the account balance after one year from the account opening date.
Tax Benefits
- Small savings schemes usually qualify for tax benefits under Section 80C.
- However, the taxation structure of this scheme is yet to be specified.
Interest Rate of Mahila Samman Savings Certificate
- This scheme has a fixed interest rate of 7.5% p.a., much higher than most bank Fixed Deposits (FDs) and other popular small savings schemes. The interest will be credited quarterly and paid at the time of closure of the account.
- The interest payable to the account holder on any account opened or deposit made in violation of the rules of this scheme will be calculated at the rate applicable to the Post Office Savings Account.
Charges payable to the Department of Posts and authorized banks
- For MSCC receipt in physical mode, the charge is Rs 40, and Rs 9 for receipt online payments- Rs 6.5 paise per Rs.100 turnover.
|
Type of transaction |
Charges payable (in rupees) |
|
Receipt – Physical Mode |
40 |
|
Receipt – e-mode |
9 |
|
Payments |
6.5 paise per Rs.100 turnover |
Premature Closure o Mahila Samman Savings Certificate
The Mahila Samman Savings Certificate account can be closed before two years in the following situations:
-
- After six months of opening the account without giving any reason. In such a case, an interest of 5.5% will be given.
- On the death of the account holder.
- In the case of an extremely compassionate ground, such as
- A life-threatening disease of the account holder.
- Death of the guardian upon production of relevant documents. In such a case, the interest will be paid on the principal amount.
Mahila Samman Savings Certificate Vs Other Small Savings Schemes
- The government has introduced many small savings schemes, which are investment tools for people.
- The popular savings schemes are Public Provident Fund(PPF), National Savings Certificate (NSC), Senior Citizens Small Savings Scheme (SCSS) and Sukanya Samriddhi Yojana (SSY).
Let’s look at the comparison of other small savings schemes with the Mahila Samman Savings Certificate.
PPF Vs Mahila Samman Savings Certificate
|
Particulars |
Mahila Samman Savings Certificate |
PPF |
|
Eligibility |
Women and girl children |
Any individual Indian citizen |
|
Interest Rate |
7.5% |
7.1% |
|
Tenure |
2 years |
15 years |
|
Deposit Limit |
Minimum - Rs.1,000 |
Minimum - Rs.500 |
|
Premature Withdrawal |
Permits 40% withdrawal after one year |
Permits partial withdrawal after 7 years |
|
Tax Benefit |
Not yet specified |
Exempt-Exempt-Exempt (EEE) category under Section 80C category |
NSC Vs Mahila Samman Savings Certificate
|
Particulars |
Mahila Samman Savings Certificate |
NSC |
|
Eligibility |
Women and girl children |
Any individual, including NRIs |
|
Interest Rate |
7.5% |
7.7% |
|
Tenure |
2 years |
5 years |
|
Deposit Limit |
Minimum - Rs.1,000 |
Minimum - Rs.100 |
|
Premature Withdrawal |
Permits 40% withdrawal after one year |
Allowed in certain circumstances |
|
Tax Benefit |
Not yet specified |
Deductions of up to Rs.1.5 lakh under Section 80C |
SCSS Vs Mahila Samman Savings Certificate
|
Particulars |
Mahila Samman Savings Certificate |
SCSS |
|
Eligibility |
Women and girl children |
Senior citizens aged above 60 years |
|
Interest Rate |
7.5% |
8.2% |
|
Tenure |
2 years |
5 years |
|
Deposit Limit |
Minimum - Rs.1,000 |
Minimum - Rs.1,000 |
|
Premature Withdrawal |
Permits 40% withdrawal after one year |
Can be closed at any time |
|
Tax Benefit |
Not yet specified |
Deductions of up to Rs.1.5 lakh under Section 80C |
SSY Vs Mahila Samman Savings Certificate
|
Particulars |
Mahila Samman Savings Certificate |
SSY |
|
Eligibility |
Women and girl children |
Only in the name of a girl child before she attains 10 years |
|
Interest Rate |
7.5% |
8.0% |
|
Tenure |
2 years |
21 years from opening the account or when the girl child attains 18 years |
|
Deposit Limit |
Minimum - Rs.1,000 |
Minimum - Rs.250 |
|
Premature Withdrawal |
Permits 40% withdrawal after one year |
Allowed under certain circumstances |
|
Tax Benefit |
Not yet specified |
Exempt-Exempt-Exempt (EEE) category under Section 80C category |
Read:
INDIA POST PAYMENTS BANK
https://www.iasgyan.in/daily-current-affairs/india-post-payments-bank
SMALL SAVING
https://www.iasgyan.in/daily-current-affairs/small-saving
|
PRACTICE QUESTION Q. Which of the following statements are correct with reference to Mahila Samman Saving Certificate (MSSC)? a) The Mahila Samman Savings Certificate is a small savings scheme that can be done only in the name of a girl child or woman. b) The minimum deposit amount under the Mahila Samman Savings Certificate is Rs.1,000 and the maximum deposit amount is Rs.5 lakhs in one account. c) A woman or guardian of a girl child can open a second Mahila Samman Savings Certificate account after a minimum gap of six months from the opening of the existing account. d) The account holder can withdraw up to 50% of the account balance after one year from the account opening date. 1. a only 2. b and c only 3. c and d only 4. a, b and d only. Correct Answer: Option 1 |
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