Context:
The Centre is unlikely to extend the Mahila Samman Savings Certificate scheme that was made available for two years beyond its March 2025 deadline, according to official sources.
Relevance:
GS II: Government policies and Interventions
Overview of the Mahila Samman Savings Certificate (MSSC) Scheme
- Scheme Duration and Purpose:
- Announced in the 2023 Budget, the scheme is available until March 2025.
- It targets women and girls of all age groups, promoting risk-free investments.
- Deposit and Investment Details:
- Allows a maximum deposit of Rs 2 lakh with a tenure of two years.
- Minimum deposit starts at Rs 1,000, increasing in multiples of one hundred rupees.
- Benefits and Encouragement:
- Encourages women to utilize formal financial saving instruments by offering a secure investment avenue.
Features of the MSSC Scheme
- Eligibility Criteria:
- Open to all individual women.
- Minors can have accounts opened on their behalf by guardians.
- Interest and Earnings:
- Provides a fixed interest rate of 7.5%.
- Interest is compounded quarterly and credited to the account.
- Maturity and Withdrawal Options:
- The maturity period or lock-in period for the scheme is two years.
- Account holders can withdraw up to 40% of the balance after one year as a partial withdrawal.
- Multiple Account Provisions:
- Women can open a second MSSC account after a three-month gap from the initial account’s opening, with the total deposit across all accounts capped at Rs 2 lakh.
- Tax Implications:
- No tax benefits are associated with this scheme.
-Source: Business Standard
