Empowering Women Through Mahila Samman Savings Certificate, 2023: Available in Public and Selected Private Sector Banks
Introduction: The Indian government, in a bid to fortify its commitment to the financial emancipation of women, has taken another significant step. The Department of Economic Affairs, Ministry of Finance, via an e-gazette notification on June 27, 2023, has sanctioned all Public Sector Banks and eligible Private Sector Banks to implement and operationalise the Mahila Samman Savings Certificate, 2023. This move is expected to increase the reach and accessibility of this unique financial scheme dedicated to women and girls.
The Mahila Samman Savings Certificate (MSSC), 2023 scheme was first introduced by the Department of Post on April 1, 2023. It was launched as part of the Central Government’s vision to secure and enhance the political, social, and economic status of women across the country. The scheme was part of a slew of initiatives announced in the Union Budget FY 2023-24, underlining the government’s resolve to provide financial security to every girl and woman in India.
Now, with the new permissions, MSSC will be accessible not only through Post Offices but also through eligible Scheduled Banks. This initiative guarantees more extensive coverage, thereby benefiting a larger proportion of women.
The key features of this scheme make it a highly attractive and secure investment option for all women and girls. One can open an account under this scheme on or before March 31, 2025, for a two-year tenure. Deposits under MSSC will yield an interest rate of 7.5% per annum, compounded quarterly, bringing the effective interest rate to approximately 7.7 percent.
Investments can be made with a minimum amount of ₹1000, and any multiples of 100 thereafter, up to a maximum limit of ₹200,000. Furthermore, the scheme allows for partial withdrawal during its tenor, providing liquidity to the account holder, who can withdraw up to 40% of the eligible balance in the scheme account.
Conclusion The Mahila Samman Savings Certificate, 2023 is a testament to the government’s commitment to fostering the financial independence of women. By enabling Public Sector Banks and eligible Private Sector Banks to operationalise this scheme, the reach of MSSC has been significantly expanded. This initiative ensures a secure financial future for the country’s women and is a crucial step towards their empowerment.
MINISTRY OF FINANCE
(Department of Economic Affairs)
NOTIFICATION
New Delhi, the 27th June, 2023
S.O. 2791(E).—In pursuance of the powers conferred by sub-clause (ii) of clause (g) of section 3 of the Government Savings Promotion Act, 1873 (5 of 1873), the Central Government hereby specifies that all public sector banks and ICICI Bank, Axis Bank, HDFC Bank Ltd. and IDBI Bank shall be authorised to operate the Scheme namely, Mahila Samman Savings Certificate, 2023 with effect from the date of publication of this notification in the Official Gazette.
(2) The authorisation under this notification is subject to the following conditions, namely, that-
(i) there shall be dedicated software in the bank for operation and accounting of National Savings Schemes with specific functionality for each scheme;
(ii) the bank may manage the operations in accordance with the said Scheme, through on-line mode also in all branches that are on Core Banking Solution, subject to adequate security checks and the branches that are not on Core Banking Solution may operate the said Scheme manually;
(iii) all remittances shall be credited to the Government Account at the Reserve Bank of India, Central Accounts Section, Nagpur within one day in case of Core Banking Solution branches and three days in case of non-Core Banking Solution branches;
(iv) in case of delay in remittances beyond the period as specified in clause (iii), the Bank shall pay a penalty equal to the rate of interest payable to the depositor plus 0.5% in case of delays upto thirty days, and 1% in case of delays beyond thirty days;
(v) the Bank shall report various transactions under proper codes to the Reserve Bank of India, and the Ministry of Finance may levy penalty in case of failure on this count by the Bank.
(vi) the Bank shall, subject to the reasonable justification furnished to the Central Government, declare in advance the list of branches that shall not operate any of the National Savings Schemes as mentioned in clause(i) above;
(vii) in case of any pecuniary liability arising from the failure of the Bank to perform in accordance with the provisions of the said Scheme, the Bank shall be liable to bear the liability, in addition to being liable to be de-authorised to operate National Savings Schemes;
(viii) in case of any amount including penalties, becoming due from any Bank under these terms and conditions, the Central Government shall realise the amount from the Bank; and
(ix) every Bank shall submit a periodic reports or any other requisite information from time to time to the Central Government concerning the deposits of subscription and withdrawals under the said Scheme.
Explanation.- For the purposes of this notification, the expression “public sector bank” shall have the same meaning as assigned to it in the explanation to clause (23D) of section 10 of the Income-tax Act, 1961 (43 of 1961).
[F. No. 1/3/2023-NS]
ASHISH VACHHANI, Addl. Secy.
