Bank Of India Launches Mahila Samman Saving Certificate For Women, Know More – News18

Bank Of India, recently, became the first bank to launch the Mahila Samman Saving Certificate 2023 at all its branches. Previously, Mahila Samman Savings Certificates were only available through post office services. On June 27, 2023, an e-gazette notification was issued by the Department of Economic Affairs, Ministry of Finance that allowed all eligible private banks, such as ICICI, HDFC Bank, IDBI, Axis Bank, and Public Sector banks, to operationalize and implement the Mahila Samman Saving Certificate, 2023. The scheme was introduced by Finance Minister Nirmala Sitharaman during the announcement of the budget for FY 2023-2024 on February 1, 2023.

Within the scheme, the women can open an individual account and with the help of guardians, it can be opened by the young girls also. To start the account, a minimum investment of Rs 1000 is required, and one can deposit up to Rs 2,00,000. This scheme was launched to promote financial understanding among women. As per some studies, it was found that women use fewer investment opportunities and access fewer credit cards. This scheme aims to help women understand the concept of investment and saving and will also help increase their wealth.

Interest Rate

7.5% of annual interest will be credited to the account every quarter, as offered in the scheme. All earnings under this certificate will be taxed as per the current income tax regulations.

Maturity of the Mahila Samman Savings Certificate

The account will mature two years after it is opened. Interested parties can open their account until March 31, 2025.

Partial Withdrawal

Account holders can withdraw up to 40% of their total balance after one year of account opening.

Premature Closure

In the case of an account holder’s death, the account can be closed prematurely. In case of severe health illness or death of the guardian, premature closure is available with an interest rate of 7.5% on the principal sum.

Policy of Account Closure

The customer can request account closure after 6 months from the date the account was opened with a 2% penalty and a 5.5% interest rate.